Auto -business carries losses: Renault loses millions of euros from cooperation with AvtoVAZ
For 6 months of 2014, the losses of Renault, the main shareholder of the Volga Automobile Plant, have already reached 55 million euros.
The situation is aggravated, since the activities of AvtoVAZ not only do not bring profit, but also, according to the results of the first half of this year, is unprofitable for the chief shareholder owning almost 50% of the factory – Renault company – Renault.
Speaking about specific indicators, it is worth noting that compared with the same period in 2013, when the losses from AvtoVAZ amounted to 10 million euros, in 2014 losses increased more than 5 times. Today it seems an incredible figure of 186 million euros – it was such income that the Volga Automobile Plant of the French company Renault in 2012 brought.
It is difficult to say which factors led to a negative result. Official representatives of the AvtoVAZ information service are refrained from public publicity and the answer to this question is not yet given. Presumably, in this situation, it is worth considering several factors. In the past few months, sales in the automotive market have fallen significantly, which also affected the Volga Automobile Plant.
In addition, the management of the car factory changes personnel policy, and also directs cash flows to modernize existing VAZ cars and the introduction of new modern production technologies. Assessing the situation from this position, many third -party experts are of the opinion that Renault has no problems in connection with the unprofitable activities of AvtoVAZ.
In 2013, Bu Andersson, recognized as the best leader in the automotive industry in Russia, came to the post of General Director of the Volga Automobile Plant, and in 2011 – the best manager for the development of auto industry in Europe. Currently, Bu Andersson is making many management decisions aimed at the enterprise’s output to break -in production. In addition to reducing staff and wages, taking a number of measures aimed at improving production efficiency, AvtoVAZ issued an order that all top officials of the Volga Automobile Plant are required to drive locally assembled Lada cars, and when going on official and business trips, flights only in economy class.