AvtoVAZ requires USD 170 million to make competitive products
Friday, 06 Nov 2009
RIA Novosti citing Mr Vladimir Putin Prime Minister of Russia as saying that Russia's ailing automaker AvtoVAZ requires an additional RUB 5 billion in investment to make competitive products.
Mr Putin said the government had earlier made a decision on financial aid to AvtoVAZ amounting to RUB 38 billion to cover the auto giant debts, RUB 12 billion for new production lines and RUB 4.8 billion for AvtoVAZ social sphere including the creation of temporary jobs.
AvtoVAZ which dominates the economy of the Volga city of Togliatti, earlier announced plans to cut its 100,000 strong workforce by over 25%. Meanwhile, Industry and Trade Minister Mr Viktor Khristenko said that the Russian government would allocate an additional RUB 3 billion for the purchase of Russian made cars for the needs of ministries and departments in an effort to support the domestic auto industry.
Mr Khristenko said that the RUB 3 billion would be in addition to the RUB 12.5 billion already spent this year on the purchase of vehicles for the Interior Ministry, Defense Ministry, Emergencies Ministry and Health Ministry.
