AvtoVAZ stops with conveyor belts again
- May 13, 2022
- 0
Due to the lack of components, the management of AvtoVAZ has postponed the summer vacations for business to “early” – the factories in Togliatti and Izhevsk were shut
Due to the lack of components, the management of AvtoVAZ has postponed the summer vacations for business to “early” – the factories in Togliatti and Izhevsk were shut down for almost all of April. It was assumed that sufficient components would be collected during this time and that the sites would be able to operate at full capacity by May. But it was not there: the domestic auto giant announced another forced break.
The story of the suspension of VAZ conveyor belts has been going on since last year, when there was a shortage of electronic components in the world. In March, sanctions pressure and supply chain disruption exacerbated this problem. As a result, the sites in Togliatti and Izhevsk went on company vacation from April 4 to April 25. During this time, the purchasing department had to find new suppliers and provide the company with work at least before May.
But everything didn’t go according to plan. From April 30 to May 11, the factories were shut down due to the holiday, and now it became known that due to the lack of components, AVTOVAZ announced a new non-working week – from May 16 to May 20. The corresponding order has already been signed, according to the factory union.
Naturally, all these downtimes have a very negative impact on sales volumes. For example, according to the Association of European Businesses (AEB), LADA dealers handed over just 8,506 cars to buyers last month, which is 78% less than in April 2021. In total, they have sold 61,218 cars since the beginning of the year – 50% less than in the first four months of 2021. And the brand’s market share fell from 23.6% to 20.8%.
The story of the suspension of VAZ conveyor belts has been going on since last year, when there was a shortage of electronic components in the world. In March, sanctions pressure and supply chain disruption exacerbated this problem. As a result, the sites in Togliatti and Izhevsk went on company vacation from April 4 to April 25. During this time, the purchasing department had to find new suppliers and provide the company with work at least before May.
But everything didn’t go according to plan. From April 30 to May 11, the factories were shut down due to the holiday, and now it became known that due to the lack of components, AVTOVAZ announced a new non-working week – from May 16 to May 20. The corresponding order has already been signed, according to the factory union.
Naturally, all these downtimes have a very negative impact on sales volumes. For example, according to the Association of European Businesses (AEB), LADA dealers handed over just 8,506 cars to buyers last month, which is 78% less than in April 2021. In total, they have sold 61,218 cars since the beginning of the year – 50% less than in the first four months of 2021. And the brand’s market share fell from 23.6% to 20.8%.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
