Russian carmaker AvtoVAZ may end up managing eight component producers included in the Samara-based SOK Group, Russian business dailies Vedomosti and Kommersant reported on Tuesday.
SOK Group offered to sell its component producers to AvtoVAZ, but hasn’t received a response yet, Reuters reported. AvtoVAZ doesn’t plan to buy the group’s component producers, as it doesn’t have the money to do so, but could take the companies into management, Kommersant business daily reported. No agreements on the issue have been signed yet, the paper’s sources said.
AvtoVAZ and SOK Group declined to comment.
SOK Group started talks to sell its component production division before the 2008 economic crisis. The group was in talks to sell the assets to United Automobile Technologies, which was created by industrial conglomerate Rostekhnologii and investment company Troika Dialog, and manages a number of AvtoVAZ component producers, but the deal didn’t take place.
SOK Group currently meets up to 10% of AvtoVAZ’ components needs, Kommersant said. AvtoVAZ is interested in uninterrupted supplies and also seeks to control the price of components, the daily added.
The automaker said recently it may not make its June production target due to parts shortages after it ramped up output to meet demand due to the government scrappage scheme.