The major shareholder of the GAZ Group is Russian Machines holding, which is part of the Basic Element Group.
Basic Element is a private equity fund (Sibirsky Aluminium Group until 2001) founded in 1997 with assets in Russia and abroad. Basic Element's core assets are in 5 sectors - Energy, Machinery, Resources, Financial Services and Construction and Development.
The consolidated revenue of the Group's portfolio businesses amounts to over $13billion. Its combined asset value exceeds $14billion. The Group employs 290,000 people across its businesses, which are located in and outside Russia, including CIS states, countries of Europe, Africa, Latin America and Australia.
On 31 July 2006, GAZ Group acquired LDV. Building on the acquisition of LDV, GAZ established a new company (GAZ International) that is dedicated to identifying international expansion opportunities. GAZ International is based in the UK and focusing on acquiring new technologies, entering into strategic alliances with foreign carmakers, recruiting high quality people and entering new export markets.
LDV is a wholly owned subsidiary of GAZ International, which itself will be a wholly owned subsidiary of GAZ.
GAZ is expanding production at LDV's Birmingham plant by adding new product lines and entering new markets in the EU and elsewhere. GAZ has plans to launch production of MAXUS models at its plant in Nizhny Novgorod (Russia), with a view to beginning distribution of the vehicles across the Russian and CIS markets.
Click here to see the new range in the MAXUS Showroom.Two senior UK executives with long-standing industry experience were appointed to take up senior roles within GAZ International. Martin Leach, a former President and Chief Operating Officer, and Chief Executive of Maserati SpA, will also become Chairman of LDV. Steve Young, former head of the Automotive Practice of the global management consultants A.T. Kearney, following an earlier career with British Leyland and Ford, will become Chief Executive.
Erik Eberhardson, President of GAZ Group:
"We are very excited about this transaction, which represents an important strategic move; expanding our market presence and bringing market leading management talent to the Group. We believe that this deal will act as a catalyst for further international growth and will enhance our overall business performance."
Commenting on his decision to join GAZ, Mr Leach said:
"GAZ is a company with great potential and is very well placed to become a major global player. It has strong roots and scale in one of the fastest growing automotive markets in the world. The resources are in place to make further acquisitions and attract high calibre people. I believe that this is the most exciting automotive development today and look forward to making my contribution to the Group and the industry."
