The expenses of Avtovaz amount to approximately 2 billion rubles per week

The expenses of Avtovaz amount to approximately 2 billion rubles per week


TASS.- The weekly expenses of Avtovaz amount to approximately 2 billion rubles, in the background of the plummeting sales, almost down to zero due to the crisis. The relevant statement has been made by the chairman of the company Yves Karakatzanis, during the meeting on the development of the automotive industry with the President of the Russian Federation Vladimir Putin.

“The sales are currently down to almost zero. Our expenses, on the other hand, amount to approximately 2 billion rubles per week. Even if our conveyor resumes operation, we will face big problems for a few months with the current assets. Our working capital is sufficient neither to support subcontractors, nor to fulfill obligations to our own employees. In particular, we are approaching the deadline date of 15 May for the payment of the utilisation fees, in the amount of 20 billion rubles” – said Karakatzanis, whose speech is given in a transcript posted on the Kremlin website.

The head of Avtovaz has also asked Putin to instruct the governors to allow dealers and maintenance centres to resume operations, during the meeting.

According to Karakatzanis, the augmentation of the financial programmes of First Car and Family Car would be the most effective measure to be taken to support the car industry at the moment, alongside the extension of their implementation period.

Along with the other participants of the meeting, such as GAZ Group, Kamaz and Sollers, Karakatzanis has emphasised the necessity of public procurement, as a measure of market support.

“We have also asked the 2021-2022 state purchases to be brought forward to this year temporarily, as well as an early application of the funds allocated for the national projects in 2021-2024 in 2020” – said the chairman of Avtovaz. A subsidy programme on the utilisation of the automobile fleet has also been brought to the table, in order to get the opportunity to sell vehicles as trade-in or to obtain discounts. Automobiles over six years of age are planned to be included in the aforementioned programme.