OAO AvtoVAZ says the company will report a net loss for 2009 that is greater than the 24.7-billion-ruble (€594 million) loss it posted under International Financial Reporting Standards for 2008.
President Igor Komarov says AvtoVAZ will generate zero operating profit this year but post positive earnings before interest, taxes, depreciation and amortization. He also says AvtoVAZ will reduce its workforce by 5,000 to 72,000 by the end of March. The company says its employment level was at about 102,000 last summer.
AvtoVAZ, which is 25% owned by Renault SA, declared in January it would boost output by 50% to 446,000 vehicles this year. Komarov said the company aims to sell about 400,000 Lada cars in Russia and export about 50,000 vehicles. Last year AvtoVAZ’s sales in Russia plunged 44% to 349,500 units, according to Russia’s Association of European Businesses.