2023-06-15 12:56:00
For a symbolic ruble, the Russian subsidiary of the Renault group had withdrawn from the AvtoVAZ group in May 2022, following the invasion of Ukraine by Russia. Since then, the Russian state body responsible for industry NAMI has been in charge. But deprived of the local production of foreign manufacturers and their exports, the Russians have no choice but to turn to local, and at low prices. What boost sales at AvtoVAZ, producer of Lada and first Russian car manufacturer. According to a press release published on the company’s website, the group announces that it will have produced around 200,000 cars in 2022, compared to 53,000 in 2021.
For 2023, the manufacturer wants to go even further, increasing its production by 28% in September and 40% from January, according to information published by the weekly magazine Automotive News Europe. Only last September, Vladimir Putin launched a general mobilization to join the ranks of the army, thus sending hundreds of thousands of young workers to take up arms. While some followed the call of the Russian president, others fled the country, creating in both cases a consequent shortage of labor on the territory.
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Prisoners to plug the holes
To fill this void that is stifling the country’s economic growth, the main Russian car manufacturer has requested prisoners sentenced to forced labor from the regional prison service in Samara, the country’s ninth largest city in terms of population (1,156,000 inhabitants). Also according to information from the American weekly, a spokesperson for the federal prison administration, the FSIN, reportedly declared that “in view of the extremely tense situation in the labor market of Togliatti and the Samara region, the representative of the plant asked the management (of the prison administration) to help him select company personnel from those sentenced to forced labour.“The AvtoVAZ group, meanwhile, did not wish to comment on the subject.
But if this alternative to the shortage of labor might plug the holes, the Russian manufacturer is and will have to be confronted with another lack: the components, in particular technological. Condemned by the European Union to economic sanctions on several occasions, Russia has suffered since last year from several disruptions in its supply chain, which might radically compromise the ambitions of the Russian manufacturer.
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