AFP reports that Russian carmaker AvtoVAZ has decided to halt production for two weeks – October 26 to November 9 – in response to a build-up of stocks. Reports suggest that the company’s recently started joint venture with GM making the Chevrolet Niva SUV is unaffected.
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According to the AFP report, between 75,000-77,000 AvtoVAZ vehicles – representing some 28 days of production – are currently ready for sale.
Citing the company’s website, the AFP report adds that AvtoVAZ believes there is a risk that some 25,000 to 30,000 cars could have trouble finding buyers.
AFP adds that in 2001, the company produced 767,300 vehicles under the Lada, Jigouli and Niva brands.
Analysts note that the AvtoVAZ brands are experiencing tougher competition from imports in the Russian market this year. Although local brands are generally substantially cheaper than imports, foreign car brands are up 20%-60% this year in response to rising incomes and the increased availability of consumer credit.
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