‘Entire Lada production halted due to sanctions’

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All Lada production is said to have come to a halt due to the sanctions imposed on Russia. that message The Wall Street Journal† Production cannot continue without deliveries from other countries.

Although Russia is introducing an export ban for, among other things, cars, there will be so much that can no longer be exported if it continues like this. AvtoVAZ, the largest car manufacturer in the country, must according to The Wall Street Journal to shut down the entire production of subsidiary brand Lada. At least 20 percent of the parts it needs to build Ladas would come from abroad. Those parts no longer go to Russia and so Lada has a problem.

That is, of course, the umpteenth blow to the Russian economy since the Russian invasion of Ukraine. However, the direct ‘victims’ of this are the employees of Lada. In the (provisional four) days that production stops, they will only receive two-thirds of the normal wage, the Russian authorities understand. Autonews.ru from communication from AvtoVAZ. There is a very good chance that it will not end with just a four-day production break. Renault Group, which has a majority stake in AvtoVAZ, will undoubtedly also feel the financial effects if Lada cannot build cars for a longer period of time. There is also a good chance that the Renault brand will have problems in Russia. It builds Dacia models under the Renault brand, for which European parts are also needed.

You can read more about the Russian and Ukrainian car industry here.

– Thanks for information from Autoweek.nl

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