Russian Carmakers Struggle to Stay Afloat amid Coronavirus Shutdown

Russian carmakers are worried that prolonged suspension of production amid a mandatory shutdown until the end of April would increase their problems, TASS reports

Kaliningrad-based Avtotor said it will extend the production break according to the government’s efforts to stop the spread of the coronavirus. 

“The non-working period at Avtotor enterprises is extended in line with the decree of the Russian President on measures to ensure sanitary-epidemiological welfare of the population on the territory of Russia due to the new coronavirus infection (COVID-19) spread,” the spokesperson noted. Further decisions can be taken in case of change of the epidemiological situation within this period, he added.

Toyota’s plant in St. Petersburg will extend production suspension until April 30, the company’s press service told the news agency.

“Toyota Motor made a decision to extend the suspension of all Toyota’s business process in Russia, including the production facility, central and regional warehouses, and all the offices (except critical functions for sustainable operations of the company) in the period from April 4, 2020 to April 30, 2020,” the press service said.

The St. Petersburg-based Nissan plant will extend the suspension of operations until the month-end, an official spokesperson of the company informed TASS. “The Moscow representative office of Nissan will also halt its operations during that time,” he added.

At the same time, Sollers Group (UAZ, ZMZ, Ford Sollers and Mazda Sollers) intends to resume production of cars next week and sent requests to regional authorities, an official spokesperson of the Group told TASS. 

“Sollers Group enterprises expect to resume production during the next week,” he said. The Mazda Sollers plant has already received authorization from the government of the Primorsky Region and the car assembling in Vladivostok will restart on April 6, the company said.

Meanwhile, truck maker Kamaz said it will restart production of trucks from April 6, the company said in a statement. Such a decision was made after consultation with the regional government and federal authorities, the automaker added.

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