United Automotive Technologies

The main activities of the company are the production and trade of automotive components, investment activities, asset management of enterprises in the cities of Moscow, Samara, Togliatti, as well as enterprises located in the Volga and Central Federal Districts.

History

2023: AvtoVAZ sold 40% of United Automotive Technologies to KamAZ

In mid-July 2023, it became known about the withdrawal of AvtoVAZ from the capital of the United Automobile Technologies (OAT) group. As part of the deal, KamAZ is transferring 40% of the largest manufacturer of original spare parts and components for the automotive industry in the Russian Federation.

As AvtoVAZ vice president for procurement Mikhail Sosnin told RBC, the process of the company's withdrawal from OAT capital was predetermined by a shareholder agreement signed by the previous owners of AvtoVAZ - the French group Renault (owned 67.7% of AvtoVAZ shares) and Rostec (32.3%). The deal is cash-strapped, it will not affect the partnership, he added.

AvtoVAZ withdrew from the capital of the largest manufacturer of auto components in Russia

In turn, the editor-in-chief of Za Rulem magazine Maxim Kadakov notes that AvtoVAZ cannot replace OAT as a supplier of individual components, and the manufacturer himself has no one else to sell them, so the partnership will continue anyway.

According to Mikhail Sosnin, after Renault left Russia and transferred Avtovaz to the state, global suppliers of components refused to cooperate with the plant, which forced the automaker to return to local suppliers "with reduced resources" of products. This step revealed a number of problems: loss of engineering competencies, lack of production capacity, wear and tear of equipment, weak financial condition, staff outflow, the top manager said.

In order to solve the problems, the Ministry of Industry and Trade is implementing a set of support measures aimed, among other things, at the development of the Russian component base - this is subsidizing R&D and reengineering costs, a cluster investment platform, and the Autocomponents Industrial Development Fund (FRP) program, the press service of the department told the publication. By mid-July 2023, projects totaling about 50 billion rubles had already been financed .^[1]

2021: AvtoVAZ bought 40% of United Automotive Technologies from KamAZ

On November 1, 2021, it was announced that AvtoVAZ bought 40% of the United Automobile Technologies (OAT) from KamAZ. The companies did not disclose the financial component of the transaction, which is planned to be closed by the end of 2021 (first you need to obtain appropriate permits).

As a result of the change in share capital, KamAZ remains 45% of OAT shares. At the same time, the parties to the agreement decided to form a partnership for the development of OAT competencies in the production of modern automotive components.

AvtoVAZ will acquire 40% of shares in OAT owned by Kamaz

KamAZ added that by November 1, 2021, a plan for the transformation of the OAT group was agreed, which will allow the group's companies to attract new customers, develop new projects and invest in their operational and engineering development in Russia.

According to the OAT website, by the beginning of November 2021, the group includes 10 production enterprises for the production of automotive components in five regions. In particular, these are:

• DAAZ LLC;
• DZPM LLC;
• Avtosvet LLC (lighting engineering) in the Ulyanovsk region (Dimitrovgrad);
• RosAvtoPlast LLC;
• Motor-Super JSC;
• JSC "VAZINTERservis";
• EVR LLC in the Samara region (Togliatti);
• LLC "SAAZ Kit" in the Ryazan region;
• PJSC OSVAR in the Vladimir region;
• SMZ JSC;
• Transport company OAT Cargo LLC in the Penza region.

The main customers of OAT products are Russian automakers - AvtoVAZ, KamAZ, GAZ, and UAZ. The group's website notes that more than 90% of all its products are supplied for Lada cars.

The OAT appeared in the plan to write off 20 billion rubles of AvtoVAZ's debts to Rostec. Theoretically, the OAT debt to AvtoVAZ can be repaid by shares, provided that the shareholders of OAT and AvtoVAZ do not mind, said Vladimir Bespalov from VTB Capital^[2]

Notes