AvtoVAZ may not fulfill its production plan for June due to disruption in component supplies, Kommersant business daily cited AvtoVAZ president Igor Komarov as saying.

Supplies of key components to AvtoVAZ are being delayed by a number of companies, including Serdobsky Machine-Building Plant, the daily said.

The disruption has been caused by a sharp increase in AvtoVAZ’s production volumes, Komarov told the paper. AvtoVAZ was producing an average of 17,000 cars per month in early 2010 but increased its output to an average of 50,000 cars starting from March, when the government’s ‘cash for clunkers’ programme was launched. The suppliers were not ready for such a sharp increase, as their production capacities have not been upgraded over the last 20 years, Komarov said.

According to a source at the plant’s management, AvtoVAZ could reduce its projected output in June by 5%. The production plan for June was 53,000 cars.


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