In connection with the projected forecast of the Russian automobile market and ongoing significant shortages of electronic components supplies, AVTOVAZ will introduce a reduced 4-day working week at the production sites in Togliatti and Izhevsk commencing June 6, 2022 for the period of up to 3 months. The reduced 4-day working week is applied to all 100% of AVTOVAZ employees.Since the beginning of this year, AVTOVAZ has taken all the possible measures to preserve jobs of the team. In particular, the Company decided to pull ahead the summer corporate shutdown to 4-24 April, during which it will do best to restore component supply chains. In addition, active work is underway to substitute some critical imported components with alternative solutions. The company is also preparing special versions of some LADA models with reduced exposure to imported components. These will be available to our customers in the coming months, progressively.Also, in order to maintain the income level of employees, the management of AVTOVAZ and the Governor of the Samara region appealed for support to the Government of the Russian Federation with a request to allocate funds for the organization of temporary and public works, including at the site of the AVTOVAZ Industrial Park, with payment for the 5th day at the expense of the federal budget. These funds have already been allocated.
In connection with the projected forecast of the Russian automobile market and ongoing significant shortages of electronic components supplies, AVTOVAZ will introduce a reduced 4-day working week at the production sites in Togliatti and Izhevsk commencing June 6, 2022 for the period of up to 3 months. The reduced 4-day working week is applied to all 100% of AVTOVAZ employees.Since the beginning of this year, AVTOVAZ has taken all the possible measures to preserve jobs of the team. In particular, the Company decided to pull ahead the summer corporate shutdown to 4-24 April, during which it will do best to restore component supply chains. In addition, active work is underway to substitute some critical imported components with alternative solutions. The company is also preparing special versions of some LADA models with reduced exposure to imported components. These will be available to our customers in the coming months, progressively.Also, in order to maintain the income level of employees, the management of AVTOVAZ and the Governor of the Samara region appealed for support to the Government of the Russian Federation with a request to allocate funds for the organization of temporary and public works, including at the site of the AVTOVAZ Industrial Park, with payment for the 5th day at the expense of the federal budget. These funds have already been allocated.
