AvtoVAZ, Russia’s largest car maker, is expected to suspend production for the whole of August, according to Russian media reports, in a bid to slash its stock of 85,000 unsold cars.
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The carmaker previously halted production in January for four weeks, reducing its stock from 100,000 to 80,000 units.
The planned shutdown comes amid tumbling sales of new cars in Russia with several forecasts suggesting that the market could be down by between 50-60% this year.
Production of cars, trucks and buses plunged 62% to 289,000 units in the first half of the year, dropping by two-thirds for Russian-brand vehicles and 52% for foreign brands, Moscow based ASM Holdings reported earlier this week.
But not all carmakers are planning extended summer shutdowns, according to a report in business daily Vedomosti. Nissan, TagAZ, Sollers, Avtotor, and GAZ Group all reported no planned shutdown beyond the usual summer break while GAZ Group is returning to a normal five day work week.
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