"AvtoVAZ" began to stop the Assembly line

“AVTOVAZ” in January for two days (9-10 Jan ) sent in a simple Assembly line producing cars it the top-selling Lada – Granta as well as Datsun. The other two lines, which produces the Lada 4×4 and models on a common platform of the Alliance Renault-Nissan B0 (Lada Xray, Lada Largus, Renault Logan, Renault Sandero and their cross-Stepway version), these days were not working and their staff is vacationing. It was planned that they will fulfill additional rest days on Saturdays January 18 and 25, but the factory decided these days to send both lines in a simple. The message posted in the group of “Atypical “AVTOVAZ” in “In contact”. The information was confirmed to “Vedomosti” a person who knows it from the leadership of the automaker. The reason for imposing downtime – lower than expected demand, he explained. About simple these days knows and dealer of “AVTOVAZ”. The representative of AVTOVAZ declined to comment. In the days of idle plant pays 2/3 of the average salary.

In 2019, AVTOVAZ increased sales of Lada in 0.6% to 362 356 PCs in the fall of the whole market of passenger cars and light commercial vehicles 2.3 percent to 1.76 million units In 2020, the market could shrink by 3.4%, the “AVTOVAZ” expects to maintain this year, market share, and the goal is to increase it, said Executive Vice President of sales and marketing for the automaker Olivier mornas.

“AVTOVAZ” used the idle before. For example, in the fall of 2019, when sales of Lada in the domestic market once again began to decline (in October, they fell by 6% year-on-year in November and 7.3%), in a simple October 31 and November 1 was sent to all the car Assembly line. The order, published in the group “the Workers of “AVTOVAZ” in “In contact”, the purpose of the outage was that the optimization of stocks of cars. But the representative of AVTOVAZ explained the simple need for a traditional annual inventory. Before corporations.operational leave, which began on 25 December, the Assembly line in Togliatti went in easy 23 and 24 December, reported “Atypical “AVTOVAZ”. Prior to this the idle mode, the automaker used in the summer (July 3-4, at the plant in Izhevsk) – as explained by the plant, due to short supply of components.

“AVTOVAZ” has increased the share in a falling market In 2020, sales of the carmaker will support the new model Niva

the Similar situation was and in April 2018 In previous years the group “AVTOVAZ” also suspended production of cars at first because of the market decline and then, beginning with the restoration of sales growth, due to the fact that suppliers could not keep up with demand (the market grew in 2017-2018). In 2019, after the market in some months, began to decline and the sales of Lada. Since mid-September, the company reduced the speed of the conveyor.

To support demand for cars, the Ministry in January 2020 resumed the state program of preferential car loan “First car” (for those who had cars) and the “Family car” (the buyer must be two or more minor children) through 5 billion rubles. the cost of the car under the terms of both programs should not exceed 1 million rubles – this matches all the family of Lada.

the dip in sales of “AVTOVAZ” is not observed – they are even a little higher January 2019, comment two dealer Lada. Prices for Lada and many other car brands in the beginning of the year increased (by 2% in average), but the sales help of the state program, they noted. According to one of interlocutors, “AVTOVAZ” has assured dealers that the downtime will not affect the supply. But even if there are delays, it is available to dealers of stocks at 1.5 months of sales (this is standard) will satisfy the demand, he relaxed. “AvtoVAZ” has made a lot in December, therefore, introduced in January of downtime, not to increase financial burden of dealers, says the source, “Vedomosti”. According to him and the words of two other dealers of Lada, about 90% of the current stocks can be released in 2019.

car Sales in Russia continue to fall into 2020, the AEB expects a decline of 2.1%, dealers are more grim

sales of Renault Logan and Sandero in January – to the level of last year, stocks are on the standard level of 1.5–2 months ‘ sales, says dealer of this brand. It connects the downtime with the release of Lada.

UAZ, according to his representative, after the Christmas holidays was also introduced simple short-term in certain areas, but from January 20 to go in the corporate holiday – it will last until February 10. But easy was not associated with a decrease in demand (in 2019, the sales of UAZ in Russia fell by 6% in December – 16%, says the data of AEB), and the need for annual repair program and realization of industrial projects, said the representative of the Oise.

“Hyundai motor manufakturing Rus” (produces Hyundai, Kia) works in three shifts, 5 days a week, downtime is not planned, the plant will continue operating at full capacity, said the representative. Russian plant Toyota, Ford Sollers, Avtotor and “PSMA Rus” work as usual, said their representatives. “Vedomosti” expect comments from representatives of the VW group, Renault, Nissan.