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.
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData