KamAZ refuses to cooperate with MAZ

A Belarusian truck manufacturer is completely losing the Russian market.

The talks on the KamAZ-MAZ merger that have been continuing for two years show no progress: Lukashenka doesn't like with propositions of the Russian side. He agrees on the joint sales network, which doesn't interest the Russian side, Kommersant writes.

The Belarusian ruler repeated on Friday that he was not satisfied with the propositions of the Russian on the KamAZ-MAZ merger. It was planned that Customs Union's two biggest truck manufacturers would form Rosbelavto holding company. Minsk was to contribute a 75% stake in MAZ and Rostec State Corporation was expected to bring a 49.9% stake in KamAZ. Active talks stopped this year. Lukashenka doesn't agree that Russia doesn't respond on the plans of MAZ upgrading and the volume of potential investments. “It may turn out that you will buy the plant for nothing by means of the so called transfer of shares and other tricks, and MAZ will produce only wheel disks,” he said.

Lukashenka however thinks that MAZ and KamAZ are able to work out a joint strategy of truck production and sales without the setting up of a joint venture. KamAZ declined to give comments. Industry sources say KamAZ “is not interested in developing a joint distribution network with MAZ without a merger of assets on legal terms,” a source says. “The Belarusian truck market is small giving little profit from joint sales.”

According to the KamAZ's quarter report, the KamAZ's share in the Russian market of heavy trucks (14-40 tonnes) was 45% in the first half of 2013, while MAZ's share was 8%. Market sources say that KamAZ's sales in Russia declined 10% for the period January to September and MAZ's sales fell 53%. In September, KamAZ's sales grew 8% up to 2,600 vehicles in compared to the same period in 2012, while MAZ reduced its sales by half to 570 trucks.