Volga layoffs: Russia’s largest carmaker Volga intends to lay off one-third of employees before December, 2009
Russia’s largest carmaker – Volga Automotive Group plans to lay off 36,000 people by December this year, which accounts for about the company’s one-third of the total number of employees.
On September 11, Russian local media quoted from an official of the Russian Ministry of Health and Social Development, that the Volga Automotive Group layoffs would gradually carry out layoff plans, and the Government would also help the re-employment.
European Business Association data show that the global financial crisis and other factors, in the first five months, Volga car sales were about 0.15 million vehicles, down 45%. As sales decline in August this year, the company had to discontinue the production for a month.
In the first half of this year, the Volga Automotive Group had a loss of 14.2 billion rubles (1 U.S. dollar equals to 31 rubles), while the first half of 2008, the company achieved net profit of 1.49 billion rubles.
Volga Automotive Group was founded in the former Soviet Union period, famous for the production of Lada sedan. At present, the Group’s major shareholders are Russian technology company, France’s Renault SA and Russia’s “Three Dialogue” investment company.
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