AvtoVAZ has said that it is planning to cut production in June as orders continue to fall.
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AvtoVAZ said that in June it will reduce the number of work shifts to one 8-hour shift per day with a 5-day week.
At present, cars are being assembled at AvtoVAZ during two 6-hour shifts with a 4-day week.
Therefore, working time will be reduced by 8 hours per week.
“The operational procedure for the enterprise in June is caused by changes in organisational labour conditions and the need for tough saving on production costs coupled with the need to retain jobs,” the firm said in a statement.
The international financial crisis has hit Russia hard, turning off credit avilability and sending the economy into a sharp contraction.
The Moscow-based Association of European Businesses (AEB) reported that April sales of light vehicles were 53% down on last year at 135,733 units. In the first four months, sales tanked 44% down on last year at 525,786 units.
However, the AEB believes that the market is stabilising – albeit at a low level.
