Avtovaz asking govt to subsidize exports, help with steel prices
MOSCOW. Feb 25 (Interfax) - Avtovaz , Russia's leading carmaker is asking the Russian government for a number of support measures.
Avtovaz is asking the government for help in three areas, company president Bo Andersson said in an interview with television channel RBC-TV.
First of all, the company wants the government to continue the vehicle scrapping program, since it has been very effective for Avtovaz, Andresson said, remarking that every ruble spent on the program brings in 1.5 rubles. The company earned 2.9 billion rubles thanks to the program in 2014, selling 53,000 automobiles, he said. He did not provide an estimate of the program's impact this year.
The government extended the vehicle scrapping program to 2015, allocating another 10 billion rubles for it.
Secondly, Avtovaz is requesting subsidies to support exports, Andersson said, without specifying the details of such support. Last year Avtovaz sold 51,000 vehicles abroad, and at present it already has orders for 70,000, he said.
The third measure that the company is requesting is help with the steep growth of steel prices, Andresson said. Avtovaz has very good Russian steel suppliers, but they are behaving very short-sightedly at the moment, he said. Avtovaz support them, and now they are saying that it is more lucrative for them to sell steel abroad, Andersson remarked.
