Tuesday, February 17, 2009

Russian auto output down 80 pct in January

Russian auto production fell 80 percent in January compared to the same month a year ago, the government statistics agency said Monday. The drop was part of an overall 16 percent drop in industrial output.

The auto industry has been hit by shutdowns at major plants. Automakers AvtoVAZ, GAZ, Ford and Renault were shut down for an extended holiday period up to one month, and AvtoVAZ -- which is now working one shift a day -- also briefly halted production as it had difficulty with suppliers over late payments.

Russia's industry had been posting an annual 50 percent growth in the past five years and was on the way to become Europe's largest car market before the credit crunch made borrowing too expensive or inaccessible.

Industrial output was down even more sharply -- by 20 percent -- compared to December, the Federal Statistics Agency said in a monthly report.

Source: BusinessWeek

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