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March 16, 2022 05:23 AM

Russia's AvtoVAZ partially resumes car output

The maker of Lada cars, which is controlled by Renault, will resume production of the Granta and Niva.

Reuters
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    AvtoVAZ Togliatti

    AvtoVAZ halted operations at its Togliatti plant this month to deal with a component shortage.

    AvtoVAZ partially resumed operations on Wednesday, after suspending output due to supply chain disruptions.

    The maker of Lada cars, controlled by Renault, has periodically halted production at its Togliatti and Izhevsk plants this month due to a shortage in supplies of electronic components.

    It said on Wednesday it would resume production of two models, the Granta and Niva, from March 16 to March 18.

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    Production of other popular models, the Vesta and vehicles on Renault's B0 platform, remains on hold.

    The company said it would separately announce a work schedule for the period after March 18.

    AvtoVAZ also said it would bring forward its corporate vacation in order to stockpile more electronic components and ensure more stable operations.

    The vacation will run from April 4 to April 24, instead of the original plan of July 25 to Aug. 14.

    Renault, which returned to profit in 2021 after two years of losses, is among Western companies most exposed to Russia, where it makes 8 percent of its core earnings, according to Citibank.

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