AvtoVAZ head estimates losses due to production halt

A halt of the main assembly line of the Russian car giant AvtoVAZ will result in significant losses for the company, the AvtoVAZ President and General Director announced at a meeting of the company's production council today. A source in the company told RBC that the production halt would lead to losses of about 500m rubles (about $15.75m).

AvtoVAZ decided to stop its assembling line from October 26 to November 9 due to low demand for VAZ cars. Some employees of the factory went on vacations. Due to the idle time, AvtoVAZ will produce about 743,000 cars in 2002 instead of planned 770,000.

© &to=http://www.rbc.com' target=_blank>RBC