Sanctions in effect: AvtoVAZ to suspend producing Ladas due to lack of parts

Russian AvtoVAZ sends employees of the plant in Tolyatti on a mandatory vacation for three weeks (at the end of May — beginning of June) and temporarily stops the production lines of Lada cars, BILD writes.

For in-depth analysis and longer stories, follow us on LinkedIn

The reason for the suspension of production is the lack of parts from suppliers due to Western sanctions.

The automotive industry is one of the sectors of the Russian economy most affected by sanctions. In 2022, AvtoVAZ has already stopped production several times due to a lack of assemblers.

in 2022, sales of Lada cars fell by 46%.

AvtoVAZ produces Lada and Renault cars. The company's production sites are located in Tolyatti and Izhevsk.

The owner of the Russian automaker until the end of 2021 was the Dutch Alliance Rostec Auto BV, owned by Rostec (32%) and Renault Group (68%).

In May 2022, the French group Renault left Russia. The AvtoVAZ plants in Tolyatti and Izhevsk, which belonged to the French, became the property of the Russian government, and the Moscow plant became the property of the city's mayor's office.

According to the terms of the agreement, the government of Moscow became the owner of 100% of the shares of Renault Russia, and 67.69% of the shares of AvtoVAZ was transferred to the state enterprise NAMI, which developed the Aurus car project. Rostec Corporation remains the owner of other AvtoVAZ shares.

On October 11, 2022, Nissan's assets in Russia were expropriated to service AvtoVAZ cars.