AvtoVAZ switches to the “Soviet” warehouse model

by alex

Now large stocks of spare parts are accumulated in warehouses, just in case. Renault-Nissan didn't do that

AvtoVAZ Vice President for Sales and Marketing Dmitry Kostromin said that maintaining large stocks of components for assembling Lada cars in warehouses will protect the company from possible interruptions in their supplies. According to him, this is «Soviet» warehouse model — create inventories in warehouses. At the same time, it requires attracting significant funds. AvtoVAZ is also aware of the need to prepare for possible future sanctions.

Last year there were interruptions in the supply of components from different countries. This year — I wouldn’t jinx it — Everything is stable with the supply of components, as well as with the stock. We switched from the alliance system of work (Renault-Nissan) to somewhere, probably, the «Soviet» system — keep stocks in your warehouses. Because the situation forces it. «Frozen» colossal amounts of money in spare parts to ensure continuity and flexibility in production. Here we are adapting as much as possible to the external environment of sanctions"

Dmitry Kostromin

Earlier, AvtoVAZ stated that sanctions pressure became especially strong in September last year. As a result, production decreased and instead of the planned 400 thousand cars, only 374 thousand were produced. This year AvtoVAZ is going to produce 500 thousand cars.

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