The Firm

Case Overview:

In 2016-2017, Isuzu Rus JSC actively invested in the production and sale of motor vehicles on the Russian market.

The production facility of Isuzu Rus JSC (the ISUZU plant) was located in Ulyanovsk, on the premises of the UAZ plant.

During this period, Isuzu Rus JSC made several strategic decisions essential for the company’s growth in Russia:

1) To develop a new rear air suspension system – FVR34UL, ensuring its installation on the chassis, followed by the start of mass production and the organization of its supply;
2) To develop and subsequently organize the production, from tolling raw materials, of the FVR34 M-base Frame Assembly, used in manufacturing the ISUZU FVR-type chassis;
3) To enter into a global supply contract for spare parts with the Belgian corporation Isuzu Motors Europe N.V.
4) To conclude vehicle supply contracts with one of the company’s key clients for an amount exceeding RUB 300 million.

To create the necessary contracts related to industrial production which are essential for implementing the first two strategic decisions, as well as for executing the spare parts and vehicle supply contracts, Isuzu Rus JSC required highly qualified legal assistance.

Scope of Services

The attorneys who are now partners of our law firm provided comprehensive legal support for the implementation of all the above decisions by Isuzu Rus JSC.

The legal drafting of contracts related to the production and subsequent supply of the new air suspension system and frame for installation on the chassis required substantial time and multiple rounds of negotiation not only with counterparties (major industrial companies specializing in the design, engineering, and manufacture of automotive components for leading global truck brands and bus manufacturers) but also with the engineering departments of Isuzu Rus JSC responsible for the plant’s production processes, whose task was to ensure that the contracts were filled with precise technical and operational provisions related to manufacturing, project timelines and implementation schedules, as well as accurate technical terminology.

In particular, the contracts governing the production of the air suspension system combined within a single agreement the development of technological and design documentation, the production of tooling (including its joint phased testing) to ensure component assemblability, the manufacture of assembly kits for chassis installation, chassis approval by Isuzu Rus JSC, production preparation in accordance with APQP stages, the establishment of supplier production capacities for automotive components, mass production and delivery of the agreed quantity of components, as well as numerous other specific provisions.  The contractual documentation governing the organization of production, creation of prototype models and the launch of mass production of ISUZU chassis frames was equally complex.

A multi-page English-language contract for the supply of ISUZU spare parts from EU countries required extensive coordination of contractual terms with the legal department of the company’s European office in Belgium and the resolution of numerous disputed issues to minimize legal and commercial risks.

Vehicle supply contracts were concluded with one of the company’s key customers. These high-value agreements required careful legal analysis and thorough negotiation of multiple contractual provisions.

Significance and Results for the Client

The legal services provided in support of Isuzu Rus JSC’s contractual work for implementing its 2016-2017 strategic development decisions proved highly effective, resulting in the successful achievement of all project objectives.

The project’s importance was of federal scale, as the practical implementation of the above-mentioned contracts – drafted and/or refined with the direct involvement of the attorneys who are now part of our team – led to:

- the introduction of new ISUZU chassis models manufactured in Russia;
- large-scale deliveries of ISUZU vehicles and spare parts across various regions of the Russian Federation.