swedish chief of russias biggest carmaker avtovaz to step down
Last Updated : GMT 06:41:18
Arab Today, arab today
Arab Today, arab today

Swedish chief of Russia's biggest carmaker Avtovaz to step down

Arab Today, arab today

Arab Today, arab today Swedish chief of Russia's biggest carmaker Avtovaz to step down

Russian President Vladimir Putin
Moscow - AFP

Russia's biggest carmaker Avtovaz, majority owned by Renault-Nissan, said on Monday its Swedish chief executive Bo Andersson is to step down after major losses as the country's auto industry struggles with recession.

Hit hard by Russia's economic crisis, the company, which makes Lada cars, has been battling with bankruptcy fears since last month reporting a tripling of net losses for 2015.

Andersson, who came out of early retirement in 2013 to become the first non-Russian to lead Avtovaz, now "plans to step down", the automaker said in a statement.

The company's board is to meet on March 15 to pick a successor who "will lead the turnaround into its next phase of operations", it said.

The Russian car market slumped 36 percent in 2015 as international sanctions over Ukraine and the crash in oil prices took their toll on the economy.

Avtovaz suffered net losses that amounted to 73.8 billion rubles ($928 million, 847 million euros), nearly triple the 2014 figure of 25 billion rubles.

That sparked fears over the manufacturer's survival and it admitted last month that current market conditions had helped cast doubt on the "group's ability to continue as a going concern".

Based on the Volga river in the city of Togliatti, Avtovaz is majority owned since 2013 by Renault-Nissan and employs 44,000 people, not counting jobs it generates in the region for its suppliers.

The head of Russian state conglomerate Rostec Sergei Chemezov, which owns 25 percent of Avtovaz, told the Wall Street Journal on Friday that Avtovaz's owners are hammering out the details on a bailout for the beleagured firm.

Renault said last month it may recapitalise and take over Avtovaz, which weighed with 620 million euros ($680 million) on the French carmaker's accounts in 2015.

At the time, Avtovaz said it would further "optimise the workforce" as part of its "anti-crisis plan" to improve finances in 2016, having already switched all of its employees and management to a four-day week in February last year.

Swedish army veteran Andersson, a former General Motors executive, had been on a drive to improve efficiency at Avtovaz's Soviet-era facilities and slashed thousands of jobs from the bloated workforce in 2014.

Rostec's Chemezov, a close ally of President Vladimir Putin, praised Andersson for cutting costs but said he had relied too heavily on foreign suppliers instead of Russian ones and that layoffs had caused local tension, the Wall Street Journal reported.

Renault took a controlling stake in Avtovaz with Nissan in 2012 as international car makers eyed the fast-growing Russian market as a key prospect to expand business.

Renault shares in Paris slipped around midday, trading 0.4 percent lower, having initially firmed following the announcement.

 

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

swedish chief of russias biggest carmaker avtovaz to step down swedish chief of russias biggest carmaker avtovaz to step down

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

swedish chief of russias biggest carmaker avtovaz to step down swedish chief of russias biggest carmaker avtovaz to step down

 



Arab Today, arab today
Arab Today, arab today Skincare PR Performance Full Year 2017

GMT 10:35 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Arab Today, arab today New hunt for flight MH370 gets under way

GMT 02:36 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today France sanctions businesses linked

GMT 01:58 2018 Wednesday ,24 January

France sanctions businesses linked
Arab Today, arab today Turkey detains dozens more

GMT 02:09 2018 Wednesday ,24 January

Turkey detains dozens more
Arab Today, arab today
Arab Today, arab today

GMT 07:22 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 07:23 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 20:34 2018 Saturday ,20 January

Bahrain press headlines

GMT 22:38 2018 Tuesday ,23 January

Bahrain Press headlines

GMT 16:25 2016 Thursday ,22 December

Italian bank Monte Paschi edges closer to state bailout

GMT 06:03 2014 Wednesday ,09 April

Please .. Let Gaza breathe!

GMT 09:12 2017 Friday ,17 November

Gleam Futures represents Grace Beverley

GMT 04:18 2017 Sunday ,26 November

Bella magazine appoints celebrity writer

GMT 06:00 2017 Sunday ,29 October

Childrenswear brand Once appoints Dyelog

GMT 16:33 2014 Thursday ,13 November

Al-Ehtimam Bil Aakhareen

GMT 03:34 2017 Sunday ,05 November

Needle & Thread relocates press office

GMT 14:56 2017 Thursday ,21 December

Ryanair says formally recognises pilots' union

GMT 01:41 2017 Saturday ,12 August

Moroccan video sparks debate on sexual harassment
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday