AVTOVAZ is looking for alternative suppliers in case of new sanctions

AVTOVAZ is studying the topic of alternative suppliers against the backdrop of sanctions risks, said today the company's president, Nicolas Maure. When he was asked about American suppliers for AvtoVAZ, he replied that "only if you look at sub-suppliers of a very, very deep level." Nicolas Maure also confirmed AvtoVAZ's intention to fully fulfill the obligations undertaken by the company under the signed special investment contract (SPIC).

“At the same time, the head of AvtoVAZ said that the deterioration of the geopolitical situation could lead to an increase in demand for national goods, including LADA cars. We may see a rise in national pride, which will lead to an increase in the consumption of national products. In this case, LADA will turn out to be the most Russian product - it has the highest level of localization among all automakers,” said Nicolas Maure, by answering a question from RBC about the reaction of buyers to the recognition of the DPR and LPR.

Meanwhile, the CEO of Renault Group, in a recent interview with the Financial Times, said that the company's plants in Russia may encounter problems in the supply of components due to the situation around Ukraine. Thus, for the production sites of AvtoVAZ, imported components account for about 20%, and for the Moscow Renault plant, this figure is close to 40%. In turn, the head of the Renault Group, that the company is "conducting research as a preventive measure" to assess where it can still get components for its plants in Russia.