Autocomponent Group has stoped component deliveries to AVTOVAZ

Autocomponent Group has stoped component deliveries to AVTOVAZ


 

RusAutoNewsCom.- The supply of components to Avtovaz plants in Togliatti and Izhevsk was interrupted due to the inconsistency in new prices for parts, as told by the director of the press service of Autocomponent Group. The supplier of Avtovaz has explained the reason behind the interruption in component deliveries, as reported by RNS.

“There are ongoing negotiations between the our plant and Avtovaz on the coordination of a new level of prices for component supplies, since October 2018. The current price levels do not cover the costs of the production of the components and their delivery to the conveyor of the manufacturer” – as stated by the press service.

The Autocomponent Group has stressed that the current circumstances did not occur unexpectedly. The situation is the result of protracted negotiations, which are still incomplete.

Previously, Avtovaz had announced suspension of production in Togliatti and Izhevsk as of July the 3rd, due to the supplier’s violation of obligations in the supply of components.

The company has drawn attention to the fact that the current stagnation in production does not have an effect on the availability of Lada automobiles in the dealer network of the brand. Avtovaz manufactures automobiles and automobile components for Lada, Renault, Nissan and Datsun brands at its Togliatti and Izhevsk plants.

Autocomponent Group produces plastic parts and polymer composites, such as mirrors, heaters and climate systems, interior and exterior details, instrument panels, bumpers, fuel tanks. The production facilities are located in Nizhny Novgorod and Togliatti.