Russia's AvtoVAZ halts production until further notice

SAMARA, March 4 (RIA Novosti) - Russia's leading carmaker AvtoVAZ has halted its main assembly line until further notice due to problems with suppliers, the company's press office said on Wednesday.

"Currently the main assembly line has been completely stopped for an indefinite term," the press office said.

Russia's leading carmaker AvtoVAZ restarted its assembly line on February 9 after suspending production on February 5 after experiencing difficulties with its suppliers.

The supply problems emerged after the car manufacturer introduced a new payment scheme, which meant that just 30% of components supplied were paid for in cash, with AvtoVAZ using promissory notes from its own and affiliated banks to pay for the remaining 70% of deliveries.