By Alexander Miller, consultant in emerging markets. Eurasia Business News – March 25, 2022

View on the AvtoVAZ giant plant in Toliatty.

The Russian carmaker AvtoVAZ announced today its intention to transfer all employees of the plants in Togliatti and Izhevsk to a four-day working week from June 6, for a three months period.

The measure is introduced “in connection with the forecast of the Russian automotive market and the continuing significant shortage of supplies of electronic components,” reported the company.

To protect the wages of employees, the management of AvtoVAZ appealed for support to the Russian government. According to the company, funds for support have already been allocated.

Earlier, on March 21, AvtoVAZ announced the possibility to send some employees to idle time. On March 16, AvtoVAZ reported that some employees would be sent on a planned corporate leave from April 4 to April 24 due to the “ongoing crisis in the supply of electronic components.”

Read also : French Renault Suspends Moscow Plant

Earlier, companies in Izhevsk and Togliatti have already announced days of downtime due to the “crisis in the supply of electronic components” (March 5, 9, 10 and 11).

The carmaker stated on March 24 that it strives to fulfill its obligations to its employees, suppliers, dealers and partners throughout the Russian Federation and in export markets.

AvtoVAZ Group is part of the Renault-Nissan-Mitsubishi alliance, the group produces cars for Lada, Nissan, Datsun and Renault brands. The alliance, which includes AvtoVAZ, supplies 35.5% of the Russian car market.

The plant of Renault (Moscow) and Hyundai (St. Petersburg) does not work. The St. Petersburg site of Nissan is working, but, according to the PR director of the company, the suspension is not far off due to the lack of components.

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