President of Russia Vladimir Putin: Mr Kogogin, KAMAZ is the largest manufacturer of heavy-duty lorries in Russia and probably the CIS. Although the entire automotive industry is experiencing difficult times, KAMAZ is coping with problems. I have seen documents showing that it has considerably expanded deductions to all levels of the budgetary system, and the company’s tax deductions have also increased. You managed to retain your entire workforce, right? How do you manage to accomplish this?
Sergei Kogogin: Mr President, the year 2022 proved to be a challenge for us because our goals and objectives were drastically altered. We were mostly integrated into the global automotive sector. It was important that we retain our capacity for work, while “divorcing” our partners, including Daimler. The company’s policy, implemented ahead of the special military operation, always aimed to localise production to the greatest possible extent.
I can therefore assure you that KAMAZ never stopped production for even a single day. We shook hands with our partners, said goodbye until better times and continued to work. In effect, we preserved our entire components base. We faced a major challenge: to master production of 240 components for each engine in two months. The company coped with this task.
We have accomplished our goals and objectives regarding K5 trucks. To the best of my knowledge, you drove this vehicle. I hope you liked it.
Vladimir Putin: I liked it.
Sergei Kogogin: This is a modern vehicle.
Vladimir Putin: Of course.
Sergei Kogogin: But this is not the only vehicle that you drove.
That vehicle is only part of the range we currently produce in the K5 series. Keep in mind that by 2021, we had essentially finished designing the whole series – and then we had to start 50 percent from scratch. A transition to a different component base.
Credit to our employees – we managed it, and our R&D centre did a fantastic job. Today, we offer Russian and, of course, international customers the full K5 range. I would particularly like to highlight the all-wheel-drive heavy-duty vehicles.
Vladimir Putin: Dump trucks, tractors.
Sergei Kogogin: These were typically used in off-road conditions (in the Far North, Siberia) and they were mostly Mercedes and Volvo vehicles.
I can say that, starting last year, we have been doing very well with deliveries. Today, we produce and deliver 30 to 50 units a month. Of course, in tough road conditions, people are cautious and are driving older vehicles, but the upgrade process has begun. We are working with our customers, holding a special conference, bringing all the logging companies here to Naberezhnye Chelny to talk about what equipment is needed and what we still need to do. Firefighting equipment, you see.
Everything here is designed to make people feel comfortable and at ease. And of course, it is crucial that we did not just recreate what we had done before – we improved the engine’s performance and increased its power. So we went from 12 litres to 13 litres, upped the power to 560 horsepower, increased the torque, and extended the service interval to 120,000 [kilometres]. We tried to give our customers even better performance, so they can make money.
And that’s what I was telling you about – what a vehicle is made of. Today, all components are produced here in Russia. I am not talking about the small details. Take diesel engines: they are used not only in the automotive sector, but also in agricultural machinery, diesel locomotives, and the energy sector – in distributed energy systems and electric generators. Last year, we “marinised” this 13-litre engine, adapting it for use on ships. Volvo Penta engines are the industry standard worldwide, and we have replaced them.
Vladimir Putin: I think ours will be in great demand.
Sergei Kogogin: Of course. The production volumes may be small compared to the auto industry, but we have already not only offered these engines for tractors to Belarusian manufacturers like Gomelmash, as well as Rostov [Rostselmash] and St Petersburg [Petersburg Tractor Plant] – we are already supplying them, and all the testing is complete.
Vladimir Putin: The engines, gearboxes, axles…
Sergei Kogogin: Yes.
Vladimir Putin: The suspension, and cab are all excellent.
Sergei Kogogin: It is a huge undertaking.
February 16 is the automobile’s birthday. Fifty years ago, the first vehicle rolled off the assembly line. By that date, we had completely modernised our axle plant – both the equipment and the design. We created an axle that, frankly, we could not break. It lasted 4.5 million cycles on our test bench at the Scientific and Technical Centre, nearly twice the required number – and nothing happened to the axle beam, nor did the parts wear out. We achieved that result.
Vladimir Putin: Great, Mr Kogogin.
Sergei Kogogin: It was essential for us to rally our personnel in the new conditions. The goal I set for myself was to bring them together on the basis of patriotism.
Mr Putin, at the first stage we had to work without days off or holidays for two years. You can imagine how the defence order increased. It was important for our people to accept that challenge with full commitment.
We immediately started sponsoring three regiments where the majority of servicemen, up to 70 percent, were mobilised from Tatarstan, including KAMAZ. Overall, we sent 24 humanitarian convoys or 1,500 tonnes of goods there. My wife, who is the State Duma deputy from our republic, supervises this project. She considers it her civic duty to travel to Rostov to hand over the cargo every other month.
We collect humanitarian aid based on requests from the regiment commanders. Since KAMAZ trucks are the most widely used vehicles in the army, spare parts for them constitute a third of the batch, a third part is made up of items our soldiers need, and the rest are cars, quadcopters, drones, and electronic warfare systems, all of which are needed there. We are trying to register the fact that young people and veteran workers in Naberezhnye Chelny and at our plants in other cities are personally contributing by making nets and various devices.
I believe it is important that not only companies but also people make a financial contribution, even if a small one from their wages.
(Sergei Kogogin went on to report on the company’s social policy, which is focused on maternity and childhood. It includes payments during the maternity leave and until the child turns 16. The company’s four camps for 10,000 children, which were built on the bank of the Kama River in the Soviet era, are maintained in good order, and half of these camps work round the year. Apart from the children of KAMAZ personnel, it accepts children from Lisichansk, a city in the Lugansk People’s Republic which Tatarstan is sponsoring.
The company has 273 family dynasties. The combined length of service in some of them is 350–360 years. Sergei Kogogin described them as loyal and motivated people who value their jobs.
The company is also improving the local system of vocational training. There are engineering classes with in-depth study of mathematics and physics at 12 schools in Tatarstan, and 85 percent of their graduates choose technical careers.
An advanced engineering school has opened at the Naberezhnye Chelny branch of Kazan Federal University.
Another priority outlined by the President in his Address – on which work is already underway – is the development of industrial parks. KAMAZ operates the largest industrial park in the country. It currently includes more than 2 million square metres of indoor production space, hosts 510 resident companies, and has created 17,000 jobs. Last year, the volume of marketable output reached 170 billion rubles, accounting for nearly 40 percent of KAMAZ’s total production.)
Vladimir Putin: And you also produce military vehicles.
Sergei Kogogin: Yes, we do. In fact, I would call it an achievement. When you visited our special-purpose vehicle plant, we were producing about 70 units a year. Today, KAMAZ produces around 3,800. In a short period, we have developed more than 20 different models.
As for motivation, I tell my teams that each vehicle we build can carry up to 10 people, withstand artillery fire without exploding, and is protected against shrapnel, including blasts equivalent to six kilogrammes under the wheel. It also has strong ballistic protection. Direct shelling is now rare; most threats involve anti-drone measures. I remind them that every effort they make, every vehicle they produce, can save up to ten soldiers’ lives. That is a powerful motivator, because each of those soldiers could be someone’s son, brother, friend, or neighbour.
What would I highlight? The Linza ambulance. It has excellent cross-country capability and can carry four wounded personnel lying down, along with six seated passengers. Its survivability is very high. The vehicle can move through difficult terrain with ease. People often thank me for having this vehicle. That is an important point.
This vehicle is similar to the three presented models, all of which are multifunctional. Each of these vehicles was developed in close cooperation with special operations forces officers.
Vladimir Putin: They are tough guys and know exactly what they need.
Sergei Kogogin: Yes, they’ve clearly articulated their requirements. It is one thing for us to design equipment based on assumptions, and quite another to incorporate direct feedback from those using it. Take these trucks, for example. How were they developed? They are built on the standardised 4386 cab platform, but when used to transport ammunition, they can be vulnerable in case of explosions. So, we adapted them into armoured platforms, adding mounts for mortars, machine guns, and full ammunition configurations. The idea is that, in principle, such a vehicle can support a special forces unit during short engagements – and that has now been achieved.
Our mass-produced Mustang vehicles have also been upgraded with armoured cabins, since fuel tankers and other logistics vehicles are increasingly becoming targets.
While this may not traditionally be our core specialisation, we also recognise that our existing armoured personnel carriers are outdated and that there is no fully modern solution currently available. As a result, our company has taken on the task of developing a new model. This year, we plan to roll out the first prototype and begin testing, with the aim of launching a pilot production batch next year.
Vladimir Putin: Very good.
Thank you.
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