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  Monday, December 9, 2019
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Russia's leading carmaker AvtoVAZ will give up its current payment scheme
Russia's leading carmaker AvtoVAZ will give up its current payment scheme and pay suppliers in cash in 2009 to prevent production disruptions, the plant said, citing its president.

AvtoVAZ briefly shut down its assembly line twice in early February over shortages of auto parts. The supply problems emerged after the company introduced a new payment scheme, under which 30% of components supplied were paid for in cash, and AvtoVAZ used promissory notes from its own and affiliated banks to pay the remaining 70%.

"The company plans to pay off the money owed for supplies provided in the first three months of 2009," the manufacturer said in a news release after company President Boris Aleshin's meeting with suppliers on Wednesday. "AvtoVAZ will stick to cash payments in 2009 due to changes in its production plan and difficulties facing suppliers."

However, the manufacturer said it would still pay its 2008 supply debts partly by promissory notes.

The press service said the plant planned to produce about 590,000 cars and assembly sets in 2009. Last summer, AvtoVAZ executives said that about a million cars and assembly sets were planned for production in 2009.


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