Group of GARO Companies is a vertical holding pursuing scientific, production and commercial operations. The holding has been formed on the basis of Novgorod State enterprise “Pilot and experimental plant of garage equipment production (GARO)” as a result of a privatization process of 1992-1993 and further reforms executed in 1994-2002, through restructure of all its assets according to requirements of market economy and Decree of the Government of the Russian Federation No. 1373 “On the reform of enterprises and other commercial organizations” dated October 30, 1997, and guidelines regarding the reform of enterprises (organizations) approved by Decree of the Ministry of Economics of the Russian Federation No. 118 dated October 01, 1997.
Novgorod plant of electric garage equipment (GARO) was put into operation on January 11, 1957, in accordance with Decree of the Ministry of Motor Transportation and Highways of the Russian Soviet Federative Socialist Republic No. 13 dated January 11, 1957.
Starting April 1, 1957, the enterprise launched production of devices for spark-plug cleaning and testing, testers of generator and starter armature, and clutch assembly testers.
By the Decree of the Ministry of Motor Transportation of the Russian Soviet Federative Socialist Republic No. 156-z dated May 21, 1968, the plant was renamed as Novgorod pilot and experimental plant “Avtospetsoborudovanie”. This enterprise was a part of a system of the Ministry of Motor Transportation of the Russian Soviet Federative Socialist Republic and its higher entity was the republican association “Rosavtospetsoborudovanie”.
From March 11, 1977, to November 19, 1992, Novgorod pilot and experimental plant “Avtospetsoborudovanie” was a parent enterprise of Novgorod production association “Avtospetsoborudovanie”.
During the 1957-1990 period the enterprise mastered production of headlight testers, testing benches for generators and starters, oscilloscope-based motor testers, roller brake testers, and microprocessor-based motor testers.
From November 19, 1992, to November 24, 1993, the enterprise went through a privatization process, resulting which, the Open Joint-Stock Company (public company) “Novgorod pilot and experimental plant “GARO” was formed.
On November 24, 1993, it was renamed as an Open Joint-Stock Company “Novgorodsky zavoda “GARO” (Novgorod GARO plant).
In consequence of the privatization process, a new team of top- and mid-level managers came to power at the company. They developed a new operational strategy and took measures to extricate the company from actual bankruptcy and to repay the company’s tax liabilities to the State.
In 1997, the top management of the company made a decision to reform the enterprise by conversion-aimed changing all of its operational principles, such conversion facilitating better management, increasing the production efficiency, manufactured products’ competiveness and, labor productivity, reducing production costs, and improving the financial and economic performance.
The key task was set – to implement market methods of management in order to achieve an operational level to ensure the company’s competitiveness internationally. The operation plan was based on the Decree of the Government of the Russian Federation No. 1373 “On the reform of enterprises and other commercial organizations” dated October 30, 1997. The planned activities were effected with an assistance of the Academy of National Economy acting under jurisdiction of the Government of the Russian Federation. Nearly all top- and mid-level managers were retrained at the Academy of National Economy, obtained their second higher education in “Economics and management of an enterprise” program and MBA and also underwent training abroad. A strong team of management specialists was built covering the following fields: enterprise management, finance management, new products design, manufacture organization, and marketing.
Since 1996, a new range of computerized products implementing up-to-date software was developed, namely, a new generation of computerized brake testers and testing lanes for nearly all vehicle types, state-of-the-art testers of generators and starters, motor diagnostics devices, wheel balancers, tire changers, headlight testers, and car lifts.