The Ukrainian auto industry is dead, workers have only one way - to join the army

04.09.2014 09:05
  (Moscow time)
Views: 985
 
Technologies, Policy, Transport, Ukraine, Economy


Moscow - Kiev, September 3 (PolitNavigator, Mikhail Stamm) - According to the Ukravtoprom association, the Zaporozhye Automobile Plant (ZAZ) produced only 8 (eight) small cars "Lanos" and "Chance" in July, and not a single one in August. We are talking about a complete stop of production and the dismissal of employees, who, it seems, have only one path left - to the army, writes RG.

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The plant's conveyor was stopped, 21 thousand workers were sent on unpaid leave. Together with family members, up to 100 thousand residents of Zaporozhye, a million-strong city, risk being left without a means of subsistence.

The owners of the enterprise, the UkrAVTO company, tried to extinguish the panic that was beginning in the city by making an explanation that ZAZ had not stopped, but had only “reduced the number of products produced.” But the complete absence of products leaving the factory is called a production stop.

The owners also called the cuts “adaptation to modern conditions” and assured that there was no talk of completely laying off staff. Although at the same time they acknowledged the deplorable state in which the enterprise is located.

Among the reasons affecting the industry as a whole, they named “the devaluation of the hryvnia and the associated decrease in purchasing power, the tense geopolitical situation in the eastern region, a complete stop in sales in the Lugansk and Donetsk regions, a decrease in demand in the Ukrainian automotive market as a whole and a decrease in export volumes.” .

But what finally finished off ZAZ, and the Ukrainian auto industry in general, was the lack of orders from Russia: with the start of the confrontation, ZAZ, Bogdan, and KrASZ lost orders from Russia for almost $300 million. Previously, the owner of ZAZ, close to the Batkivshchyna party, Tariel Vasadze, complained that on other models he could not earn even $100 per car.

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