AvtoVAZ’s losses for 2013 might reach 7bn RUR

February 17, 2014. The losses of AvtoVAZ, a car making factory, might reach 7bn RUR for the year 2013, Kommersant reports.

The figure was calculated by analysts after Renault published its annual report and stated ˆ34m worth of losses from joining in AvtoVAZ in the year 2013 against ˆ186m worth of profits in 2012. This was the actual result of the factory’s performance without the discounting of non-interest bearing charges issued by Rostech.

AvtoVAZ management is now looking into ways to cut down on losses. In 2014, the company will lay off 7,500 workers (including 2,500 managers and white-collar workers and 5,000 blue-collar ones) through ‘natural personnel wastage’, that is, 11% of its workforce. The factory, which is experiencing problems with suppliers, will try to negotiate a 5% decrease in spare part prices and a prolongation of the payment period from 45 to 60 days.

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