Russian automaker of the Lada brand imposes mandatory holidays

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Vehicles of the traditional Lada brand are produced in the workshops of the Russian automaker Avtovaz. However, the assembly lines will be closed for three weeks at the end of May. Mandatory leave for the entire workforce.

The reason: Acute supply problems, as Der Spiegel wrote. According to the Interfax news agency, the group reported that “in the spring of 2023, deliveries to a number of component suppliers, Avtovaz, have ended.”

Mandatory holidays were already planned, but actually only for July. Now these will be brought forward from May 29 to June 19. Saying that otherwise, uninterrupted production would not be possible anyway, Avtovaz said:

Nationalized to Russia last year

Avtovaz has only been in Russian hands since last year. The group was previously owned by Renault. However, after the war started, the French auto giant withdrew from Russia and sold Avtovaz to the Russian state.

In fact, Avtovaz was able to expand its market leadership in Russia with the withdrawal of western automakers. However, Western sanctions have also affected important Western suppliers to which Russian automakers depend.

The Russian auto market has therefore collapsed by 59 percent, and sales of Lada vehicles have also fallen by nearly 50 percent in 2022. Avtovaz had to suspend production for months last year. (kae)

Source :Blick