Russian AvtoVAZ Pledged to Restore Profitability in 2009
OREANDA-NEWS. May 22, 2009. Russian AvtoVAZ, which faces difficulties in sales, has pledged to restore profitability in 2009, cut costs and maintain demand on the back of a low-cost loan program. The largest Russian car maker said Thursday that it had approved anti-crisis plans intended to help the company emerge strong from the crisis.
Implementation (of the plan) will make it possible to cut costs this year, restore margins and create a framework for the company’s successful development further down the road, according to a press release of the company which posted RUB 6.3 bn loss in 1Q 2009. AvtoVAZ said it plans to create a cash flow by optimizing the logistics processes, reducting supplies inventories by RUB600 mn and slashing finished product inventories by 70,000 cars.
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