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Automotive Industry In Russia. Results of 2019. Prospects

Automotive Industry In Russia. Results of 2019. Prospects

Exit date 02.06.2020

Format PDF, 55 стр.

Price 960 eur.

report contains information on automotive vehicle production in Russia, particularly passenger cars and commercial vehicles

02 june more info


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AVTOVAZ raises the production plan up to 570 thousand cars

AVTOVAZ plans to produce about 570 thousand cars this year instead of 450 thousand as it was announced earlier.
The newspaper "Vedomosti" writes referring to the letter of Damir Kashapov, the vice-president of AVTOVAZ for purchases, to suppliers that since June till December, 2010 the plant plans to make 399241 cars (approximately 57 thousand per month). It was decided to increase the plan in connection with the growing sales volume, Igor Burenkov, the director for external relations of AVTOVAZ, says.
According to "ASM-Holding", for four months of 2010 122 thousand cars (+47.5%) left the AVTOVAZ conveyor but the plan in May provides production of 45.9 thousand cars. Thus, in 2010 AVTOVAZ can make over 567 thousand cars - almost twice more (by 92.4%) than the year before. It means that the plant can receive profit this year as the break-even point for the enterprise is 450 thousand cars.
AVTOVAZ wishes to use production growth to make suppliers to reduce prices. Mr. Kashapov suggests reducing them since June, 1st not less than by 3%. AVTOVAZ explains validity of this offer by the fact that increase of supplies reduces the cost price of manufacture of components. According to suppliers, they do not have any possibility to reduce prices as prices for raw materials grow.