Russian automaker IzhAvto plans to start producing VAZ-2107 cars from March, said Alexander Volkov, the president of the constituent republic of Udmurtia, told ITAR-TASS.
Volkov said that IzhAvto expects to receive the necessary equipment and car kits from AvtoVAZ, Russia’s largest carmaker, in March. Plans are to produce 3,000 carsby May and to increase capacity to 10,000 cars a month by June.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
IzhAvto filed for bankruptcy in September 2009. In February, an arbitration court in the company’s base of Udmurtia, declared IzhAvto bankrupt and placed the company under bankruptcy proceedings for six months.
AvtoVAZ is expected to take over 100% of the automaker’s assets at a bankruptcy auction.
Under the memorandum of development signed with AvtoVAZ in December 2010, IzhAvto is to produce at least 126,000 cars in 2011 including more than 70,000 VAZ-2107 models. IzhAvto also plans to produce four Nissan and two Renault models. The company’s production of foreign car models is to amount to 300,000 cars per year by 2015.
