Sollers board of directors has approved the investment programme until 2021

Sollers board of directors has approved the investment programme until 2021

RusAutoNews.Com – As reported by Finmarket, the Sollers board of directors has approved the draft budget for 2018, the long-term financial plan and the investment programme for 2018-2020 at a meeting on February 1.

In addition, the threshold value of the net debt/EBITDA ratio has been approved according to IFRS at Level-1.

Finally, the board has approved the guarantee of the company to VTB Bank for a loan to UAZ with a debt limit of 3.7 billion rubles.

Sollers car and LCV sales have dropped by 16.5% year-on-year in Russia in 2017 to 41,755 units. The sales of UAZ have also shrunk in Russia, by 14.8% to 41,432 vehicles.

Ulyanovsk Car Factory (the key asset of the group, manufacturing UAZ vehicles), Zavolzhsky Engine Plant and Sollers Far-East are the factories belonging to the group, along with the joint venture with Japanese Mazda in the Far East region of the country, manufacturing Mazda CX-5 and Mazda 6 automobiles. FordSollers joint venture also operates in Russia.

The sales of new vehicles manufactured by Sollers Group have increased by 13.9% year-on-year in January 2018, up to almost 2000 units, as stated by the Association of European Businesses Car Manufacturers Committee. The figure includes SsangYong sales of 41 units in January 2018 and 1935 UAZ vehicles, which grew by 11.5%, reported by RNS.