AvtoVAZ has reported losses for 2013 of RUB6.9bn (US$192m), with revenue also falling 4% to RUB175bn as the Russian market contracts.
The Russian automaker is attributing the loss to a drop in lower-priced vehicles, as well as model line renewal and new car launches.
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AvtoVAZ president – and until recently at the helm of fellow-Russian manufacturer GAZ Group – Bo Andersson – said: “To provide stable profitability of the company, management has developed 220 actions to improve [the] economic [situation].”
The plan includes optimisation of the model line; control and management of finished stock volumes; working with suppliers on purchasing price reduction; increase of settlement periods with suppliers; limit of the period of settlements with dealers and a decrease in overproduction.
There will be also be cost reductions as managers, specialist and employee headcount falls by 2,500, although AvtoVAZ says this will be achieved through “natural turnover” and without redundancy.
For 2014, AvtoVAZ plans to introduce a new Lada Granta hatchback as well as a Lada Priora with robotic transmission.
This year will also see the company expand its Renault-Nissan Alliance production with three new models of Renault and Datsun brands.
