AVTOVAZ announced idle-mode in production as of 5 March

AVTOVAZ announced idle-mode in production as of 5 March


 

Autostat.- Avtovaz will suspend automobile production as of 5 March at its production sites in Togliatti and Izhevsk, due to the ongoing crisis in the supplies of electronic components and to prevent a significant decline in the company employees’ level of income. 

Therefore, 5 March 2022 has been declared a downtime day with pay. The 9-11 March period, on the other hand, has also been marked as downtime days with payment, equivalent to two-thirds of the average monthly earnings. In the meantime, the staff may use the aforementioned days as fully-paid holidays with a transfer form December 2022. The relevant statement has been made by the Avtovaz press office to Autostat, adding that the work schedule for the upcoming weeks will be announced in due course. As understood, the company is making every effort to resume production at its factories in Tolyatti and Izhevsk as soon as possible.

As stated by the general director of Renault Group Luca de Meo during a recent interview with Financial Times, the factories of the company in Russia may face component supply problems, due to the situation in Ukraine. The imported components ratio of approximately 20% in the production sites of Avtovaz is as high as almost 40% at the Moscow plant of Renault, which also suspended production between 28 February – 5 March, due to a series of interruptions in component supplies. As previously announced by the chairman of the company Nicolas Maure, the company is searching for alternative suppliers to avoid the risks of sanctions.