CJSC ZAZ, the largest Ukrainian car producer

The largest Ukrainian car producer is CJSC ZAZ, which specializes in unit assembling and car making simultaneously. In 2005, the Zaporozhye-based plant produced 148,163 cars, a three-fold increase in production over 2003-2005.

Table 1. Production of automobiles by Zaporozhye Automobile Plant according to results of 2005, pattern by classes and models

Tavria and Slavuta cars are engineered in Zaporozhye mostly out of Ukrainian-made components. The rest of cars are assembled out of imported aggregates and units. ZAZ’ main partner is GENERAL MOTORS, including its structural department GM-DAEWOO, which entered into an agreement with ZAZ to assemble cars produced under the OPEL, DAEWOO, and CHEVROLET brands.

Ukrainian market needs cheap "people's" cars. At this stage of Ukraine's car industry, the Tavria car made by Zaporozhye plant fits this role. However, this car calls for a serious upgrade, perhaps with foreign partners as well. One of the most recent projects of the company was the signing of an agreement with DAIMLER-CHRYSLER, following which CJSC ZAZ commenced large-unit assembly of MERCEDES-BENZ cars at its production facilities in Ilyichevsk (Odessa region), where the company has its automobile assembling plant.

Compared to 2004, the volume of production and assembly of cars by CJSC ZAZ increased in 2005 by 17.6% (output in 2004 - 126 ths. vehicles). In the future, the rate of car production rise will stay stable, since the company plans to strengthen its on foreign markets, with the Russian market foremost Russian-made cars enjoy traditional demand on the Ukrainian market, which is only explained by the prices for these cars.