AvtoVAZ is reportedly seeking a new loan worth 12 billion roubles (USD400m) in order to compensate workers it has let go.
The Russian Interfax news agency said the loan will be interest-free until 2015, Interfax said, citing a package of measures proposed by the company to the government’s anti-crisis commission.
The report did not say where AvtoVAZ hoped to obtain the loans.
Some reports say new loan finance could come from the Russian government.
AvtoVAZ which is 25% owned by Renault, will cut up to 27,600 jobs, close to a third of its workforce, to help it reach “effective and profitable production.”
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 GlobalDataThe company employs 102,000 and made the announcement as separate data revealed that car output in Russia fell 62.6% year-on-year to 369,000 units between January and August.