AvtoVAZ has suspended production again this week after SOK Group stopped parts supplies, according to a report in business daily Kommersant.
SOK Group suspended the supplies shortly after a report that AvtoVAZ delayed talks on acquisition of carmaker IzhAvto from SOK Group.
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AvtoVAZ is expected to resume operations later this week, after talks with the supplier, the company’s press office told Tass.
SOK Group, which accounts for 40% of AvtoVAZ’s component input, has refused to accept AvtoVAZ’s bills of exchange as payment for component supplies, sources at both companies told Kommersant.
AvtoVAZ has switched to paying for 70% of component supplies with its bills of exchange in recent months.
In early February AvtoVAZ suspended production after other suppliers also declined to accept its bills of exchange and interrupted deliveries.
