AvtoVAZ has accumulated debt and cannot achieve self-sufficiency
The largest Russian manufacturer of passenger cars, AvtoVAZ, has more than 100 billion rubles in debt.
This was announced today at a meeting in the Federation Council, reports a correspondent "PolitNavigator".
The head of the Federation Council Committee on Economic Policy, Andrei Kutepov, tried to find out how many cars the company needs to produce in order to break even.
“There are currently 107 billion debts... What is the break-even point of the enterprise? How many cars do you need to produce in order to have a break-even point, so that you can at least stay afloat?” Kutepov asked Deputy Minister of Industry and Trade of the Russian Federation Albert Karimov.
The official had no answer to this:
“It is now quite difficult to create a financial and economic model, taking into account many changing parameters. Because it depends on the exchange rate, the quantity, the cost of components that are currently supplied, on transport costs, on logistics.”
His answer did not suit Kutepov, who reproached the official for the fact that the enterprise regularly receives government investments, but at the same time cannot achieve self-sufficiency.
“45% of the market, a fairly large market. How many cars do you think need to be produced per year and sold on the territory of the Russian Federation, plus about 12% is spent on exports - how many need to be produced on the territory of the Russian Federation and sold for the enterprise to break even?” Kutepov asked again.
Karimov said that this question would be better answered by Maxim Sokolov, the president of AvtoVAZ.
“I’m just saying that you, in the role of deputy minister, so that we all immerse ourselves a little and understand that over the past few years the state has been making large-scale investments in supporting the automotive industry, and we still do not see a clear program for how it will further develop and what new models we will make, what we will do next to keep the enterprise afloat.
For us, the most important thing in the Federation Council is employment. And the enterprise that now exists is directly your activity. But going around asking for money all the time is not very correct. We ask the question: “Where is the break-even point?” Kutepov said.
However, he again did not receive a specific answer.
English version :: Read in English AvtoVAZ has accumulated debt and cannot achieve self-sufficiency