Due to acute supply problems, the Russian car manufacturer Avtovaz is collectively sending its staff on holiday for three weeks from the end of May. “In the spring of 2023, a number of component suppliers Avtovaz informed us about the end of deliveries,” the group announced on Thursday.
The company, which was taken back by the Russian state last year, complained that the cancellation had broken previous supply agreements. The auto industry is one of the sectors most affected by Western sanctions in the country after the start of the Russian offensive war.
Production was also halted for months in 2022
Actually, it was not planned that the assembly lines at Avtovaz would be shut down for three weeks until the end of July and that the staff would go on vacation. The mandatory leave is now brought forward by two months and lasts from 29 May to 19 June. Otherwise, uninterrupted production would not be possible anyway, says Avtovaz. Last year, the group had to stop production for months due to problems with accessories.
Due to the withdrawal of virtually all Western automakers from Russia, Avtovaz has expanded its market leadership, but these difficulties have prevented it from benefiting much from the withdrawal of its competitors. With an overall market decline of 59 percent in 2022, Lada sales also fell by 46 percent.
Source: Krone
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