NewsWorldRussian AvtoVaz is in trouble. Lada has already...

Russian AvtoVaz is in trouble. Lada has already started firing! – The truth

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It was only a matter of time before the largest Russian car manufacturer started to reduce the number of employees. The Russian car market fell by 60% by the end of July. However, by more than 80% since March. And in Togliatti they are able to produce only two old models – Granta and Niva. Photo: AvtoVaz AvtoVaz – you will not see the Lada Vesta test track on the production lines at the moment. Its production is to start at the beginning of next year. But no longer in Izhevsk, but in the main plant in Togliatti. The Iževsk plant is currently laying off workers. It is to produce the Largus electric station wagon. The Russian car company AvtoVaz, producing the famous Lady, is in a difficult situation. In March, it was forced to stop production due to a lack of parts caused by Western sanctions. Additionally, in May, Renault decided to divest itself of its stake in the joint venture. Production at the main plant in Togliatti only started in June. AvtoVaz managed to get only the simplified “anti-sanction” Lada Granta without components from “enemy” countries, and in July the old Niva Classic onto the lines. In September, the Lada Largus may appear on the lines, which is a model built on the foundations of the first generation Dacia Logan MCV. However, there will only be 1,800 examples that the automaker is able to assemble from stock. Read more AvtoVaz: Well, after all. The Russians have launched the production of Lady from the ‘prehistoric era’! It is obvious that he cannot even think about the sales that Lada had until March. To illustrate, let’s say that in the first half of the year, the Russian manufacturer sold only 74,714 cars, which is a year-on-year drop of 63%. And that includes the first two months of the half-year, which have not yet been affected by sanctions or Russian aggression in Ukraine. However, the entire Russian market is developing similarly. Since the beginning of the year, only 387,712 cars have been sold in this country, 58.8% less compared to the same period in 2021. In July, it represented a drop of up to 75%. It is obvious that under such circumstances, the trio of old models cannot support the largest Russian car company with ten thousand employees. It was only a matter of time before he started firing. And that’s what’s happening. Read more Will they move Lada to Uzbekistan? Assembly will be replaced by complex production, not in the main plant, but in the plant in Iževsk, which employs 3,200 people. It is currently at a complete standstill, its employees are on paid vacation, while the resumption of production is not planned until the beginning of the year. He is to assemble an electric version of Largus, which probably won’t be a hit. So it is not surprising that, according to the latest information, the Izhevsk plant has already started to reduce the number of employees. So far on a voluntary basis. Workers who decide to leave will be paid a one-time severance payment that corresponds to five to seven times the average salary. The maximum amount of severance pay will be 183,341 rubles (3,100 euros). It can be deduced from this that the average salary here ranged from 440 to about 600 euros. Read more Russian journalists bought the ‘anti-sanctions’ Lada Granta. Not quite successful, however, AvtoVaz emphasizes that it does not plan mass layoffs, but that is more a wish than a reality. Although Lada Granta and Lada Vesta remained the two most popular models in July, thanks to which Lada is still a Russian unit, models from Chinese and Korean automakers are fighting their way to the fore. Kia and Hyundai are in second and third place. But they are followed by an aggressive Chinese trio – Chery, Geely and Haval. For example, the best-selling July SUV was the Chinese Geely Coolray. This means that the popularity of Lád may gradually weaken under the pressure of Chinese automakers. Especially if he can’t resume production of newer models and come up with new ones. It will become more and more difficult for the company to support employees on paid leave.

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