Russia’s largest carmaker AvtoVAZ has split off six of its subsidiaries, together employing 30,000 people, from its main car-making business, and could potentially sell them off, its president Igor Komarov said.
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The indebted carmaker is currently a multifaceted company which produces most of its own parts. It is now trying to re-invent itself as a modern, streamlined manufacturer.
The split-off subsidiaries focus on steelmaking, press-work, mechanical assembly and production of instruments.
Together, some 30,000 employees – or nearly a third of the current 94,000 staff – will work for the new companies.
Komorov told reporters: “For each industry, we must find the optimum format in the shape of a subsidiary, a joint venture with a foreign producer, the passing on of the asset into the orbit of another manufacturing group.
“We are now in the process of finding investors (for these companies), we are at the very beginning (of the process).”
Renault, which has a 25% stake in the Russian company, said last month it was to give AvtoVAZ a non-cash aid package worth EUR240m (USD349m) as part of a rescue plan.
Separately AvtoVAZ said it would supply over 1,400 vehicles to Egypt by the end of this year.
The company said that these would include 1,000 Lada 2107 cars which are earmarked for the Egyptian defence ministry.
Additionally, AvtoVAZ is also expected to supply 627 Lada 2107 assembly kits to an Egyptian plant this month taking the total number of fully built up cars and assembly kits exported to the country to 9,000 in 2009, up almost 9% year on year.
