Putin pumps billions into auto industry

[Holly_Hobby]

Russia will pump the equivalent of about $1 billion (£699 million) into its automotive industry to try to avert heavy job losses. The Government fears that the car market, which until a few months ago was booming, could shrink by 60 per cent this year.

Vladimir Putin, the Russian Prime Minister, visited a factory operated by AvtoVAZ, the country's biggest carmaker, to set out measures for support amid fears that big job losses could trigger social unrest. More than a million jobs have gone since December.

In Tolyatti, where AvtoVAZ is based, Mr Putin said that the company would receive 25 billion roubles (£518 million) in state funds. He asked state banks to give bridging loans for another 8 billion roubles. AvtoVAZ has been told that it should attract another 90 billion roubles itself.

AvtoVAZ, which is 25 per cent-owned by Renault, of France, needs money to pay suppliers and has halted production. Mr Putin said: “Unlike some other companies, AvtoVAZ has not fired workers en masse. And that is an expensive feat.”

Mr Putin also said that another 13.6 billion roubles would go to other carmakers including, 4.6 billion to Kamaz, 5 billion to Sollers and 4 billion to Gaz, which is owned by Oleg Deripaska, the billionaire.

http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6005598.ece

[leftstreet]

1. Imagine a government having to fear social unrest

AmericaFuckYeah sure doesn't

[girl gone mad]

2. The Nikkei rallied overnight on news that..

GM and Chrysler are expected to accept pre-packaged bankruptcy. Japan thinks this is good news for Toyota and Honda.