AUTONEWS

Russian Lada Niva maker to suspend production

Avtovaz will suspend car production from March 5 at its production sites in Togliatti and Izhevsk, due to the ongoing crisis in the supply of electronic components and to prevent a significant drop in the income level of the company's employees.

Therefore, March 5, 2022 has been declared a day of inactivity with pay. The period from March 9 to 11, on the other hand, was also marked as days of inactivity with pay, equivalent to two-thirds of the average monthly salary. Meanwhile, employees can use the mentioned days as fully paid holidays with a December 2022 transfer form. The relevant statement was made by Avtovaz's press office to Autostat, adding that the work schedule for the coming weeks will be announced. in due course. As understood, the company is making every effort to resume production at its factories in Tolyatti and Izhevsk as soon as possible.

As Renault Group General Manager Luca de Meo said in a recent interview with the Financial Times, the company's factories in Russia could face component supply problems due to the situation in Ukraine. The proportion of imported components of approximately 20% at Avtovaz's production sites reaches almost 40% at Renault's Moscow plant, which also suspended production between 28 February and 5 March, due to a series of interruptions in the supply of components. As previously announced by company president Nicolas Maure, the company is seeking alternative suppliers to avoid the risk of sanctions.