AvtoVAZ to halt production due to disruption of component supplies

MOSCOW, Jul 2 (PRIME) -- Russia’s largest car maker AvtoVAZ will suspend production at its two sites in Togliatti and Izhevsk from Wednesday due to a supplier’s violations of liabilities on car components deliveries, the company said in a statement on Tuesday.

“AvtoVAZ Group will be forced to suspend production at all assembly lines in Togliatti and Izhevsk from July 3, 2019. Idle time is caused by another unlawful violation of obligations under the supply agreement and disruption of the supply of necessary components from OOO Zavod Avtokomponent (Nizhny Novgorod). AvtoVAZ has done everything possible to prevent this situation and is taking all necessary measures to speed up the resumption of production. The company reserves the right to recover the loss incurred from the unscrupulous supplier,” the statement said.

AvtoVAZ said it will announce resumption of production separately.

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