RUSSIA: AvtoVAZ to extend shutdown
AvtoVAZ has joined the list of car producers who are extending previously announced production suspensions.
It initially had planned to shut down production only from 29 December to 16 January but has now added a two-week extension to 30 January.
According to local reports, AvtoVAZ plans to use the period to carry out repairs and equipment upgrades.
Late in November, it was reported that Russia's state-owned Vnesheconombank, or VEB, might provide a US$1bn loan to AvtoVAZ. A Russian news agency also said that Globexbank, a subsidiary of VEB, had provided a 3bn ruble tranche to AvtoVAZ under a newly opened credit line.
AvtoVAZ is being financed as part of a programme to support companies in core economic sectors.
Russia's largest car makers - AvtoVAZ , Gaz Group and Kamaz - have all turned to the state for help, as demand falters.