On 30th of November, the JSC AVTOVAZ Board of Directors meeting was held in Moscow.
AVTOVAZ Board discussed Company’s forecast results for 2015, heavily impacted by the negative market conditions in the Russian Federation and CIS countries (Russian car market continues to decrease by 34% and LADA domestic sales dropped 30% Jan-Oct 2015).
In this context, the board of Directors decided to further develop the budget for 2016 with additional specific measures to improve profitability, preserve social stability and support the staff.
Reaching of the Company’s middle-term targets of 20% market share, 6% of operational profit and positive free cash flow will be helped by:
- Strong stimulation of sales and export;
- Product offensive with new models and updated product portfolio.
The Board of Directors generally highlighted the main principles of the Company’s recovery plan, its adaptation to the market conditions and anticipated market rebound:
- Optimization of production plants;
- Pre-retirement and retirement non-forced social programs;
- Periodic application of special working conditions (e.g. 4-day working week and social works), etc.
AVTOVAZ Board acknowledged the potential acquisition of one or more legal entities of the OAT Group and is conducting further discussions.
