Car production has shrunk at Avtotor by 37% during the first half of 2020

Car production has shrunk at Avtotor by 37% during the first half of 2020


 

Interfax.- “The coronavirus pandemic has become the main reason behind the decline in car production. In the meantime, the current level of decline in the production corresponds to the previously predicted shrinkage rate of approximately 40% for the year 2020″ – as told by the press service of the company to Interfax. 

Avtotor Group has manufactured 71,000 automobiles within the January-June 2020 period, which is equivalent to a 37.1% year-on-year shrinkage, as stated by the press office.

The company has developed and implemented realistic measures taking the current shrinkage in production into account, aimed at, first of all, securing jobs and salaries, as well as providing estimated performance indicators in production.

“Some employees will be involved in the modernisation of existing car production, working at facilities surrounding the new plant under construction, situated on an area of 32 hectares. People will also be engaged in landscaping adjacent to the Avtotor-Arena fitness center, which was built with the company’s own financial resources” – as told by a company representative. 

As stated by the press office, Avtotor has managed to pay the salaries of all the employees of the factory during the pandemic period. A pre-existing social package, including all benefits and payments guaranteed by the employer, has  also been fully preserved.

The founder of Avtotor Vladimir Sherbakov has announced the company’s predicted year-on-year shrinkage rate in car production in 2020 due to the pandemic as between 30-50% in the beginning of May.

Avtotor was established in 1994 and started production in 1997. The factory currently manufactures more than 40 models, mainly KIA, Hyundai and BMW vehicles.