Slowdown signs - AvtoVAZ halts production until further notice
Thursday, 05 Mar 2009
RIA Novosti reported that Russia's leading carmaker AvtoVAZ has halted its main assembly line until further notice due to problems with suppliers.
The company's press office said "Currently the main assembly line has been completely stopped for an indefinite term."
Russia's leading carmaker AvtoVAZ restarted its assembly line on February 9 after suspending production on February 5 after experiencing difficulties with its suppliers.
The supply problems emerged after the car manufacturer introduced a new payment scheme, which meant that just 30% of components supplied were paid for in cash, with AvtoVAZ using promissory notes from its own and affiliated banks to pay for the remaining 70% of deliveries.
