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AvtoVAZ CEO: No Profits Until 2018
Nicolas Maure, who was named CEO of OAO AvtoVAZ in March, says the Russian maker of Lada cars won’t post a full-year profit until at least 2018.
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Nicolas Maure, who was named CEO of OAO AvtoVAZ in March, says the Russian maker of Lada cars won’t post a full-year profit until at least 2018.
Maure tells Vedomosti the pace of recovery will depend heavily on a revival in the Russian car market. In the meantime, he says, the company hopes to hike exports.
Maure succeeds Bo Andersson, who was squeezed out after two years because of his blunt efforts to cut jobs and push for better performance from suppliers. When AvtoVAZ announced its 2015 results in February, the company warned it would need cash from its major stockholders—Renault and Nissan—to avoid collapse.
Russia’s market for passenger and light commercial vehicles shrank 10% in 2014, 36% in 2015 and 15% through the first five months of 2016, according the Moscow-based Assn. of European Businesses. Lada sales fell 15% in 2014, 31% in 2015 and 11% so far this year.
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