Renault controlled AvtoVAZ may already be facing additional shortages of key components due to trade sanctions imposed on Russia after its invasion of Ukraine.
Reuters reported that a statement from the company said it may suspend some assembly lines at its Togliatti plant on Monday for a day ‘due to a persistent global shortage of electronic components’.
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The report said the company plans to resume operations at the plant in full on Tuesday, March 1.
The report added that the company declined to comment on new sanctions on the Russian economy, saying it continued to monitor the situation.
Economic sanctions on Russia could impact supplies of parts that are imported. However, Russia’s economy has been generally nudged into greater self-sufficiency by sanctions in place since Russia’s annexation of Crimea in 2014. AvtoVAZ has historically operated at a high level of vertical integration and most parts supplies are domestically sourced, but some analysts have suggested the company still has to import some critical components. Recent comments reportedly made by AvtoVAZ CEO Nicolaus Maure point to the company making preparations and investigating alternatives in the event of possible supply disruptions.
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