AUTONEWS
Russian automaker AvtoVAZ begins to feel the brunt of European sanctions
The shortage of electronic components supplies and ambiguous predictions about the future of the Russian automotive market forced JSC AvtoVAZ to make the decision to transfer 100% of the employees to an incomplete four-day workweek. The new regime will be introduced at production sites in Tolyatti and Izhevsk from June 6, 2022 for a period of three months. Federal budget resources will help AvtoVAZ maintain the fifth working day of the week, but this will not affect the factories.
''Since the beginning of this year, AVTOVAZ has taken all possible measures to ensure the preservation of employees jobs'' – said in a press release from Rostec, which owns a 32% stake in AvtoVAZ JSC. The company was rebuilding supply chains and looking to replace some important imported components with alternative solutions. In addition, AvtoVAZ is preparing special versions of some LADA models, which will be less affected by imported components. The new machines will gradually be available to customers in the coming months.
To ensure that the income level of the company's employees does not decrease during the four-day working week, the company, together with the governor of the Samara region, asked the Russian government for support with a request for the allocation of funds for the temporary organization. and paid public work. The funds needed to pay for the fifth day have already been allocated from the federal budget. In particular, works on the AvtoVAZ Industrial Park site will be paid for.
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