A number of suppliers to AvtoVAZ have stopped shipping due to late payment, according to a report in The Moscow Times.
The report says that parts suppliers in the Saratov region are in critical condition, and some have ceased delivering components because they have not received payment from AvtoVAZ for several months. The report also said AvtoVAZ is now building unfinished cars.
AvtoVAZ will complete the automobiles once the plant receives the necessary parts, Interfax reported Wednesday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The firm is especially short on rubber components from Balakovorezinotekhnika, a company based in the Saratov region, a source at AvtoVAZ told Interfax.
The company has stopped shipments until AvtoVAZ pays a 500 million rouble bill for the components, the source said.
Russia’s car market slumped 33% in January as the economic downturn and a shortage of credit hit sales.
