Interview of Deputy General Director Alexander Zotye Gnezdyukom

Interview of Deputy General Director Alexander Zotye Gnezdyukom

With only one model of many unfamiliar brand Zotye could sell for 9 months of this year more 2 thousand cars. Compared with Lada, it is insignificant is not enough, but longer, than the Haval, Mini, Jeep and Jaguar. On the new models in Russia, prices their, Belarusian production and a possible launch of the electronic Zotye E200 in Russia we had a talk with the deputy general director of "DADA Motor Rus" Alexander Gnezdyukom.

Sergei Arbuzov: Do I understand correctly, that the only starting point in Russia Zotye Soupa - in hydromechanical automatic transmission, which put on this model? Zotye T600 is equipped with a machine gun with 2 clutch, which comes paired only with a 2.0-liter engine, and this modification become very ill: it accounts the least 10% selling, although the higher class, the higher the fraction of automata. meanwhile, with Zotye Soupa can offer purchasers the usual classical hydromechanical automatic, which we no longer fear.

Alexander Gnezdyuk: Outlook entirely true. But I would add, that is not the only starting point model. Said two-liter engine is certified under 177 l.s. and falls out of a comfortable tax bracket, that price sector, which plays a very sensitive Zotye T600, and on Zotye Soupa "Fluid" comes with a 1.5-liter turbo engine in 150 l.s. Не считая того, Zotye Сoupa — it is all the same relatively new model, and it is very different from the T600, which for several years.

SA: Approval of a vehicle type Zotye Soupa (based on T600) acts with 1 June, but as of September inclusive single car dealers are not shipped ...

A.G.: ... entirely true.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

Zotye Сoupa (T600 Cup)

SA: comes, that in fact it damages, OTTS after deadline passes, and machines are not sold. Why not work to build a logistics, filled with warehouses and start implementing a 1 June?

A.G.: And I'll tell you, that warehouse supplies kits for Coupa we have provided in the "Unison" more by March, and in this sense, we thought out logistics. But what can be done, so it is to calculate the date of receipt OTTS - but here there is also a place for certification.

Не считая того, in Russia there are always some difficulties with the certification of Chinese models. let us say, if Volkswagen brings its European certificates, them questions nobody asks, and when Chinese companies bring European certificates, sertifitsiruschy our body may require several additional protocols - the certificate itself is not enough. Have biased attitude to the "Chinese", but it works for us, so that we constantly prove our consistency. Не считая того, machine still new to the "Unison", plant needed additional time to build debugging, and it turned out to be a little more, than we thought.

SA: Since we turned to the creation of, then talk about the "Unison" — your Belarusian partners, where at the moment the car Zotye collected by otvortochnym, but in principle before the end of the year we should make a full cycle. Belarus is among the customs alliance, and in Russia just this year, the grace period ends, and then all you need to enter spetsinvestkontrakty, which on the one hand require a complete cycle of production, and on the other make it possible to preserve the benefits. At what stage in the "Unison" at the moment the process of transition to full cycle?

A.G.: That's right. I was there two weeks back, ready huge new plant, Equipment installed in workshops, Assembly line, welding shop and body shop colors. Between "welding" and "color" is a covered walkway, in which the body will. In December, will be a trial run, to begin welding the first body.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

SA: Means will need a few more months, before "Unison" will start a full-scale assembly.

A.G.: March, April.

SA: optimistically!

A.G.: You probably hinting at the long run a full cycle in Zhodino on BelGee plant?

SA: Not, why, everyone usually takes several months — here, Vesta AVTOVAZ launched in Izhevsk about eight to nine months.

A.G.: On "Unison" commissioning work has been a very popular company, they were engaged in a lot of adjusting the flow of the assembly in Kaluga, AVTOVAZ — generally, It is a company with a long history. It was chosen intentionally, just so, to avoid many mistakes. Including those, who have been admitted in Zhodzina during setting Geely Atlas flow assembly.

Now for the start-up timing: the plant will not lose in benefits for the payment of duties on the import of devices, because 50% "Unison" is located in the Facilities of the Ministry of Industry of Belarus. And until that time, the plant will retain the benefits and "otvortochnoy" assembly.

SA: Body for a number of models can be cooked on the new equipment?

A.G.: It is planned to run two welding strips, each of which will cook two models. Any of the lines is designed for the annual production 25 thousands of bodies.

SA: That is, about any localization punching until there is no question.

A.G.: Not, everything will be imported from China.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

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SA: With any amount of work these lines will become profitable, около 10 thousand a year?

A.G.: BUT 10 thousand a year for us - it is a small amount, Now, when we plan to implement this year, 3 thousands. So just go out for the coming two years 10 thousand.

SA: I have at the moment will catch. Exactly three years ago, in this very room you had read to me, what in 2016 year we are planning to gather in Belarus 3 thousand cars, в 2017 8 thousands already on a full cycle ". In the past year, you've sold thousands of machines, and in the first three quarters of the current - 2 087 machines. Something went wrong?

A.G.: Everything went wrong! In 1-x, in my words there is always a popular share guile, I need to win the trust of customers and competitors to scare. Here now some opponents forbid dealers to put the car next to us.

SA: Make it to 3 thousand for the new year?

A.G.: And how, because Coupa went - I'm selling this for a thousand remaining time!

SA: According to the latest measure in September to dealers Coupa has not reached ...

A.G.: Send the machine - that's just what I call the dealer before, as you went into my office, I got a car, enthuses, He said "Wow" — Voronezh dealer. Generally, until the end of the year 400-500 copies Coupa we have shipped to dealers.

SA: of course, by Coupa grow and share machines, on the other a sense of its output in the Russian Federation.

A.G.: On the basis of the complete sets, which we plan to advance in the first time, the proportion between the machines and mechanics will 50:50.

SA: Unlike some Chinese brands, Zotye does not address the eminent suppliers of devices, combining an attractive design with the units and apparatus of Chinese companies. One side, This allows us to offer a nice price, with another, очевидно, implies a reduction in consumer qualities. For example, on the T600 is worth exactly the same 5-speed manual gearbox from the LD525 of Chongqing Landai Powertrain, as well as on the Lifan X70. apparently, because of, that on the T600 200 kg heavier Lifan X70, First oil change is necessary to conduct only 2 000 km. As the owners, when the oil drain there is a large amount of wear and tear of the goods — очевидно, because of, the box has an overload. At the moment, Zotye released in Russia on huge volumes, and it is important to choose the right strategy in discussions with the buyer. Should the sales staff to talk about such subtleties service: o tom, that the oil in the engine should be replaced every six months, o tom, that you can not tow a trailer — shortly speaking, o tom, that the low price of the car is always a downside, as in everything in nature? Or sales managers do not have to read about it?

A.G.: And I did not even think about it, honestly tell you, no strategy ...

Interview of Deputy General Director Alexander Zotye Gnezdyukom

Zotye T600

SA: In that sense,, that dealers have a sales plan, and how they do it, you do not care?

A.G.: Not, in the sense, that the box is not overloaded. We really recommend changing the oil 2 000 kilometers, but for the reason, we just do not know, there is filled ...

SA: Why second oil change in the mechanical box should be at 40 tyschah kilometers and then - every 40 thousand?

A.G.: The fastest, Works just automatically transfers the requirements for the Chinese market to our terms. For us, no one will develop a unique service programs, because we, unfortunately, while the secondary market for Zotye, after all, our volume in Russia is not yet significant.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

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SA: In China, by the way, mark also indicates modest results: a bit more than last year 320 thousands of cars and crossovers ...

A.G.: Well, all conditional: if associated with a leading Chinese manufacturers, Zotye, naturally, small mark, but anyway, absolute figure - very big, especially, by Russian standards.

SA: Fine, We return to the production on "Unison".

A.G.: Yes, in the next year we plan to "cook" two models, and it will have a big win in logistics, so that the kits takes a very large amount. In the same container we can put wings on fifteen bodies, roofs fifteen bodies and so on. Benefit, repeat, greater, because it involved cars and transportation, and sea, and railway. But it all comes to the plant, If we talk about the "DADA Motor Rus", then we generally do not need to make a profit ...

SA: I hear it from many "Chinese", the other you have the ability to only envy ...

A.G.: Let me explain: we, of course, we have here, in Russia, profit, but I diverge on its brand promotion, on verbovanie attention to it, the company's development. That's not so long ago, we signed a credit facility with the bank, "Credit Europe Bank", and it started with our subsidy, so that was an attractive rate for the client.

SA: The Bank is not a major, not at the hearing ...

A.G.: Right! So we sell a little while, 2 thousands of cars in the first three quarters, but already started receiving applications from larger banks. Now we launch a leasing program for individuals, that's where our income is now out. In this sense, our local KPI consists of sales, increase in sales - is our aim.

SA: so, to "Unison" is scheduled to launch two bodies welding strip, and one of these lines, you will take your 2 models: it will Coupa and T600?

A.G.: Not, Belarus government allows to preserve the "screwdriver" when running full cycle, T600 because we are not going to translate welding — it makes no sense, this model in its current form, we will sell more the following year maximum. As for Coupa - yes, it will boil, along with it we begin to weld bodies for T700.

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Zotye T700

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Interior Zotye T700

SA: Do I understand correctly, that Zotye T700 brand in Russia will come at a high price segment, so that the car above the class, than T600, and other equipment - it is 6MKP and 8AKP, turbo in 1,5 l have no. It makes sense to bring this car, understanding, we basically do not buy expensive 'Chinese' — modest sales of the same Atlas confirmation? Do not logical it would be to go with the T300 at the moment, which is significantly cheaper?

A.G.: And we do not forget about the low price segment, we wish to present their models in Russia is widely, and T300, of course, We will also sell. Just T700 already has European certification, and T300 yet. T700 faster and easier to run, so it and chose, as well as the "Unison" is already close to welding, the second model, coupled with Coupa need to run as fast as possible. This is important primarily for the "Unison". They have invested a lot of money, they need to beat, so the more they will cook at once, the faster it will pay off all. true, Welding body for the T700 will begin only at the end of the year.

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Zotye T300

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Interior Zotye T300

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Interior Zotye T300

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Rack Zotye T300

SA: so, Body for T700 and Coupa will "cook" to "Unison" is already in the following year, along the way you continue to build T600. Не считая того, in the "waiting list" models, who have the opportunity to come to Russia, you are still at the beginning of the year called the SR9.

A.G.: Yes, but we, naturally, will not produce the full cycle - it makes no sense, we do not expect him to huge volumes.

SA: And you beheld that car alive? Yes, in the pictures she looks spectacular, and, on the views of many, even ostensibly similar to the Porsche Macan, but the technique is not the way it is promoted: all the same 5-speed on the bodice, all the same 1.5-liter engine. There is even a machine with 2 clutch, but Aisin or Getrag, а Harbin Dongan Automotive. And the cost will SR9, apparently, much more expensive, than T600 ...

A.G.: Yes, I even think, that expensive T700 ...

Interview of Deputy General Director Alexander Zotye Gnezdyukom

Дорестайлинг Zotye SR9

SA: It means more 1,5 million rubles, the same risk.

A.G.: Above, above. But I therefore say, that we it will not cook, but bring a car in Russia absolutely necessary. We have a hot Zotye band of one hundred ten messages - "I wish SR9», although the, what you said, it's not a secret, is public information. SR9 - this car is very beautiful, She looks rich, and it is important, than the sixth gear in a box. Sit in the lounge, and there all Vertu technology. Inside you feel like at an expensive restaurant, it's fantastic! We are selling it for the next year, I hope ...

SA: When?

A.G.: By the end of the year, not earlier.

SA: so, with 4 models for the next year, we determine, and what will happen to the T300 - that's just 2020 year?

A.G.: Yes. And I wish to state with a base price of 650 thousand rubles in an atmospheric engine 1,6 l i 136 l.s.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

Zotye T300 ‘2017–н.в.

SA: Geely to increase the value added share of the enterprise in Zhodino established subassembly engines: attachments installed in Belarus — you go with "Unison" in this way?

A.G.: not yet. With regard to the localization of components, it will tire, batteries, Glassing, radio, sealants, technical liquids.

SA: And how many on the basis of 2020 the year you want to sell cars in Russia?

A.G.: I think, that the outcome 2020 , we our with 4 models all the way have to go to the volume of 10 thousand cars.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

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SA: When the question arose about the transition to full cycle, Why did you decide to stay on the "Unison"? Whether a reasonable position logistics, economic, but, может быть, even political move to Russia? Or you do not have an important question, in principle,, as your production site negotiates benefits with the government - is your purchase price, and the rest of you are not interested?

A.G.: Not, why, we just fundamentally very, as our playground negotiates with the government. And "Unison" until agrees much better with the government, than our Russian plants with Russian government. And if the government thinks in Russia at the expense of, Hyundai whether to give or not to give preferential treatment, Belarus decision is very favorable for the two automotive companies - "Unison" and BelGee. by the way, I'm met with "Autotor" about 5 years ago, When we set out to "screwdriver" to start, they were then the most unaffordable. And when we started to work with "Unison", and we have it all came together, from "Autotor" came, but how is it possible to change the crossing stallions ... We have all the same with "Unison" davneshnie relations, they are to us very priklnnye. They are nice guys, "Frendo", a pleasure to work with them.

SA: look: you in the next year ready to upload only one weld line on the "Unison", в то время, himself "Unison" is very interested in, to have them both lines were loaded. You are not afraid, that these "nice guys" put on the second line of someone else, while you swing? Is this a threat?

A.G.: there is, naturally, and if you put, it will be right, in fact, so that they are not enough financial support have from Zotye, economy in their difficult, than we. And if they went out and brought another partner, I do not mind, so that we are also interested in, to "Unison" was strong, stable now. If this happens, we think, where to go with the following models: you can come to Stavropol, in Cherkessk, the same "Autotor" ...

SA: You told me back three years, that "to bring electric car in the Russian Federation" — your dream. In the same time, when not so long ago, "Unison" came out with an initiative to assemble electric Zotye, you from this disown, despite the fact that now, it seems, the right moment: for wanting to collect "green" Industry and Trade Minister Manturov ready to give any preference. Or you do not need the assembly in Belarus, and the need in Russia?

A.G.: No, not repudiate, my geography in this case does not interest, I am interested in electric Zotye. I would like to sell, I would like to promote it, it would be very attractive to the market.

SA: It Zotye E200?

A.G.: Yes. This is a beautiful vehicle for everyday urban use, and it will cost you less of any electric car in Russia. Just in this case, the initiative "Unison", instead Zotye, and I do not understand how to work with it, what to do with these machines. At the moment, "Unison" worth Party collected electric E200. I sat in their, I talked with them, I swept them, This beautiful cars. But. As "Unison" will certify? Chinese car connector, in the cabin there is a huge «aiped» Chinese, and I do not understand, how to live with. And I "Unison" said, that as soon as the car will be fitted, I'll take them from you and selling!

Interview of Deputy General Director Alexander Zotye Gnezdyukom

Zotye E200 ‘2016–н.в.

SA: At what cost?

A.G.: До 20 thousands of dollars — roughly speaking, to 1 400 000 rubles.

SA: And who will buy?

A.G.: I call people. Not so long ago there was a call - maybe, of mad, I do not know, I did not ask, not interested. He said to me: "I want a thousand electric vehicles". I replied, that in the first two months, I can give a hundred, what my interlocutor said unknown, that it is satisfied. What do you think, what he needs as many electric cars? Оказалось, for ... More karsheringa some guys called - also for "electric trains" and also for karsheringa. I'm asking: "A Infrastructure?». they meet: 'Charging parking shopping centers, for us it karsheringa between shopping centers ... "

SA: What do you think about the launch of the brand in Russia Traum? In China it is still referred to as Junma and is positioned as the luxury division Zotye? There is a large three-row crossover, and there, at least the last, it was presented in Beijing this year, and small, whom, by the way, yet at the Zotye in Russia ...

A.G.: It was created not for this - it's for the younger generation of Chinese. They need a car bright, but demokratichnaya, we will not do it. and generally, I have a parent company of Zotye International, I, confess, about Traum know nothing.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

dream S70

SA: And about Domai? They do not bring in the Russian Federation?

A.G.: And about them, too, I do not know anything. Not sure, but, it seems, there are some restrictions on exports: Zotye can not export Domai.

SA: You have at the moment is very low requirements for dealers, all of them - the Chinese multi-brand dealers. As long as you implement the same model, it works, and with 4 models - will not work.

A.G.: Will be. Changing requirements for dealers not associated with the width of the model line, this is due to the economy, with the amount of sales. Перед тем, how to build single-brand center, dealer should definitely be aware of, that he will be able to feed themselves this one brand, то есть, realize about 40 machines per month.

Interview of Deputy General Director Alexander Zotye Gnezdyukom

SA: And when Zotye will appear monobrand centers? You negotiates? Any initiative must come from dealers?

A.G.: Not, the dealer has nothing to do with it. This is my policy initiatives. And this directive will release at the moment, when usvoyu, they will begin to converge economy. I tell them: build multi-brand centers, and I will increase the share of profit margins and give some kind of investment in construction. And it will be profitable, because single-brand will have a margin 5%, and multi - 4% or 4,5%. Everyone is invited, but only at the moment, I usvoyu, that it would be beneficial to dealers, on the other, they all have one notable word otpravlyut ...

SA: You drew me a wonderful program - for three years. And what you are interested in the ruble exchange rate? Stronger or weaker?

A.G.: stronger, naturally. Although I honestly tell you, that we personally operate in rubles - and with China and Belarus, because I personally like "DADA Motor Rus" completely indifferent, what will be the ruble, but for the head office, of course, the stronger ruble, the higher the profit, they somehow all this translate into yuan.

SA: Whether there is a critical threshold of ESP?

A.G.: Not. No matter how weak ruble was neither, No one here will not go away — I mean at the moment, of course, Chinese producers.

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