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Article

11 Mar 2022

Author:
Angel Sergeev, Motor1

Russia: Lada production halted due to lack of supplies

Lada production halted due to lack of supplies in Russia, 10 March 2022

...Virtually all European automakers have frozen their operations in Russia and it seems that even Lada is facing difficulties carrying on.

A new report from The Wall Street Journal claims the AvtoVAZ-owned brand has halted production at its main plant in Togliatti due to the lack of supplies of different vehicle components. Renault holds a controlling 67.61-percent stake at AvtoVAZ and relies on supplies from its factories in Romania with over 20 percent of the parts for Lada coming from outside Russia, mostly connectors and other electronic components. Lada’s Izhevsk plant has also stopped producing cars.

For now, production has been halted for four days but this is probably just the beginning and more interruptions can be expected...

“In connection with the ongoing crisis in the supply of electronic components and in order to prevent a significant decrease in the level of income of the company’s employees, the AvtoVAZ administration made the following decisions on the work schedule of factories in Togliatti and Izhevsk: March 5, 2022, is declared a downtime day with pay. The period from March 9 to March 11 is declared idle days with payment in the amount of two-thirds of the average monthly earnings”...

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