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March 21, 2022

AvtoVAZ suspends operations due to parts shortages

Russia’s domestic auto giant is being disrupted by parts shortages exacerbated by Western sanctions due to war in Ukraine.

By David Leggett

Renault controlled AvtoVAZ has said it is partially halting manufacturing operations at its plants in Togliatti and Izhevsk on March 21-25 due because of shortages of electronic parts.

The statement, reported by Reuters, offered no other details on what parts are being impacted, but the latest stoppages follow others at AvtoVAZ plants in recent weeks.

Reuters also reported that Renault has restarted operations at its own Moscow plant today after the automaker had suspended operations due to supply chain difficulties in recent weeks.

Automakers in Russia – such as Renault controlled AvtoVAZ – are facing challenges on multiple levels. Besides the direct impact of Ukraine crisis sanctions on traded parts and finished vehicles, existing supply chains pressures are continuing for semiconductors and electronic parts. Moreover, with exports stymied, the outlook for domestic demand is being hit by a much gloomier economic backdrop in Russia.

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