AVTOVAZ Expands Izhevsk Manufacturing to Protect Jobs and Boost Local Suppliers

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AVTOVAZ is planning a broader reshaping of its Izhevsk site by bringing in a new wave of non automotive manufacturing. The goal is to have external companies take charge of these production lines while the core car business continues to rely on established facilities. The move aims to sustain local employment and create new job opportunities through diversified operations that go beyond vehicle assembly alone. In practical terms, this means stamping and plastic production will be established on site, with the objective of substituting a portion of imported components used in vehicle assembly with domestically produced parts. The strategy reflects a broader shift toward regional manufacturing ecosystems that can support the brand while reducing dependence on external suppliers for critical components.

Meanwhile, AVTOVAZ has signaled a plan to relocate the manufacturing line for the Lada Vesta from Izhevsk to Tolyatti. The intent behind this shift is not only to optimize production logistics but also to preserve jobs across the Izhevsk site as part of a balanced approach to workforce stability. The company indicates that the described support measures will be implemented in Izhevsk to cushion the impact of the relocation and to maintain local employment levels during the transition. This approach is framed as a coordinated effort to maintain economic activity in the region while streamlining the companys production footprint across its manufacturing network.

In a public briefing, AVTOVAZ outlined a set of measures designed to back the transition. The plan includes a project to establish a new car production activity at the Lada Izhevsk facility and the creation of an industrial park within the Izhevsk site. The industrial park would involve local manufacturers of non automotive products, with the aim of generating new employment opportunities and integrating adjacent suppliers into the vehicle ecosystem. The intention is to build a more self sufficient production environment, where the collaboration of local suppliers supports both existing and future vehicle programs, while ensuring that jobs are not lost in the shift of certain manufacturing activities to other locations. The overall message from the company underscores a commitment to preserving regional employment by expanding the local manufacturing footprint and fostering partnerships with regional suppliers who can contribute to the evolving portfolio of Lada vehicles and related components.

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