AutoVAZ stopped assembly of cars on all three production lines at its Tolyatti plant Nov. 12, because of parts shortages, according to the plant’s trade union representative.
The plant produces Lada Largus, Lada X-Ray, Renault Sandero, Logan, Lada Niva Legend, Lada Kalina, and Lada Granta.
AutoVAZ systematically stops its conveyors because of component shortages. To compensate, the OEM tries to implement 6 day work weeks, but these also were cancelled because of parts shortages.
AutoVAZ also stopped production for a corporate vacation July 26 – Aug. 15.
AutoVAZ makes Lada and Renault passenger cars. Production plants of the company are located in Tolyatti and Izhevsk. Owner of 100% of Russian OEM is JV between Rostech (32%) and Renault Group (68%)
PSR Analysis: The shortage of electronic components is the sole reason for the production stop. The main supplier problem is the Russian branch of Bosch.
At the same time, Asian component suppliers are in much better condition. For example, Nissan increased production of cars at its plant in St. Petersburg by 20%. However, total sales of passenger cars in Russia are down for the fourth consecutive month. PSR
Maxim Sakov is Market Consultant-Russia Operations for Power Systems Research
