“AvtoVAZ” podgotovitel of action due to difficult market situation

“AvtoVAZ” podgotovitel of action due to difficult market situation


Currently, the management of OJSC “AVTOVAZ” is preparing a corrective action plan which at the end of November 2015 will be submitted for consideration of the Board of Directors.

SAMARA, 9 Nov. One of Russia’s largest automakers AVTOVAZ will prepare by the end of November a corrective action plan in connection with the unfavorable situation on the market, reported in a press-service of the enterprise.

“Currently, the management of OJSC “AVTOVAZ” on the background of the negative economic climate and the unsatisfactory financial results, prepares a corrective action plan which at the end of November 2015 will be submitted for consideration of the Board of Directors,” the company said.

It noted that the drop of sales on the domestic market in the first nine months in annual terms amounted to 28.3% against the General falling of the Russian car market by 33.5% in conditions of increase of purchase prices of components and unfavorable currency exchange rates. The group “AVTOVAZ” is the only automaker that has not carried out forced stops of the conveyors, the company said.

Earlier, the head of Rosteh Sergey Chemezov stated that the management of the Corporation will share in the personnel policy of “AVTOVAZ” in the question of optimization of personnel. Chemezov said that “so it is impossible to act and must act more flexibly”. The company noticed that social and personnel policy of the company remains unchanged and is in full compliance with the collective agreement.

“Are only the planned activities for improving discipline and working with offenders, and employees with low productivity. This activity is performed in full compliance with… legislation,” — said the press service. Optimization of personnel in “AVTOVAZ” began in February 2014, during the year, by agreement of the parties was dismissed about 6 thousand people. The main reason for the layoffs — fall of the car market and lower expenses.

In 2015 “AVTOVAZ” announced the continuation of reductions. So, the company plans to lay off about 1,100 people. A joint venture of Rostec and Renault-Nissan Alliance Rostec Auto BV, which owns and 74.51% of the capital of AVTOVAZ (81.4% of ordinary and 47% of privileged shares).