25 December 2002 16:03
RUSSIA: GAZ HALTS PRODUCTION, LOOKS TO BAGHDAD FOR RELIEF
With slack domestic demand for its cars forcing assembly-line shutdowns, Russia's second-largest passenger-car
producer is hoping that a new order from Iraq kick starts flagging sales. The Gorky Auto Factory (GAZ) will neither
confirm nor deny that it will halt production of its flagship Volga sedan until February, "Vedomosti" reported
on 17 December. Dealers told the newspaper on condition of anonymity that the company is simply not turning a profit on
Volgas, once the standard means of conveyance for the Soviet elite. With three production stoppages this year already,
GAZ will produce fewer than 70,000 Volgas instead of the planned 98,000. But an Iraqi order for 5,000 Volga cabs could
get the conveyer belt up and running again, "The Moscow Times" reported on 19 December. When queried about the
possible effect of military action in Iraq on the contract, which could be worth more than $25 million, GAZ spokesman
Vasilii Sarychev told "The Moscow Times," "If we thought like that, we wouldn't be able to do
business at all." Russian automakers will likely bid 2002 farewell with a feeling of good riddance, as low demand
and overproduction afflicted the nation's top two carmakers. Russian carmakers' market share slipped from 71
percent in 2001 to 63 percent in 2002, "Vremya novostei" reported on 16 December. DK Copyright (c) 2002.
RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty
[AIW [Asia Africa Intelligence Wire]] |
RUSSIA IN FACTS
