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Russia: AvtoVAZ to lower Lada production

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Russia: AvtoVAZ to lower Lada production

The Russian carmaker announced it aims to cut factory output of its Lada brand cars by as many as 25,000 units during the following three months as the country’s sales slump deepens.

The rapid decline in the country’s new car sales prompted the AEB trading group to forecast the market would dip 12 to 13% this year, after sales fell 17% in June and 23% in July. Lada sales last month took an even faster dive, with a 25% decrease.

“Because of the decrease in sales of all cars in the Russian market, and in order to better manage inventory levels, AvtoVAZ made a decision to reduce production of Lada cars in September, October and November for a total amount of 25,000,” the company said in a statement.

The Russian automaker is currently controlled by the Renault-Nissan alliance. The company said it only built 47,100 Ladas and 12,100 Renault and Nissan cars in July. Lada, the best selling auto brand in Russia, saw its sales going down by 16% to 220,822 units during the first seven months of 2014, according to figures sourced from the Moscow-based Association of European Businesses (AEB). Also, according to ASM-Holding, seven-month production at AvtoVAZ was of 213,700 Lada vehicles and 51,800 Renault and Nissan autos (the latter up from 20,800 units last year).

Via Automotive News Europe

by Aurel Niculescu (my Google+) - Tuesday, August 26th, 2014 - filed under Industry, News, Others. Image credit: .
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