Parts shortage to keep Russia Avtovaz factories closed longer
Renault-Nissan carmaking plants have been idle since the beginning of March
Russia’s top carmaker, Avtovaz, part of the Renault-Nissan group, said on Wednesday it will keep two of its factories closed until late April over a lack of foreign components due to Western sanctions over Ukraine.
The Lada maker said it will push forward the three-week annual leave – which normally takes place from late July – to begin on April 4 at the facilities, the carmaker told Russian news agencies.
The measure will allow Avtovaz to “accumulate sufficient stocks of parts to ensure more stable operations from April 25 at the Togliatti and Izhevsk” factories which have been idle since the beginning of March.
Avtovaz also turns out Renault-branded vehicles.
A number of Russian manufacturers have already announced a halt to production due to a lack of components following the imposition of unprecedented sanctions by Western countries on Russia over the conflict in Ukraine.
A number of Russian manufacturers have already announced a halt to production due to a lack of components following the imposition of unprecedented sanctions by Western countries on Russia over the conflict in Ukraine
The sanctions have also triggered a plunge in the value of the ruble, which is likely to eat into the purchasing power of Russian consumers.
Western carmakers have ventured into Russia to assemble cars over the past two decades as the country’s economy expanded. Renault is particularly exposed as it invested in Avtovaz alongside Rostec, a state-owned defence conglomerate run by a sanctioned close ally of Russian President Vladimir Putin.