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Russia's AvtoVAZ could restart car production on Thursday

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Russia's leading carmaker AvtoVAZ said on Wednesday it could resume production on March 5, following a suspension earlier in the day over problems with suppliers.
SAMARA, March 4 (RIA Novosti) - Russia's leading carmaker AvtoVAZ said on Wednesday it could resume production on March 5, following a suspension earlier in the day over problems with suppliers.

The carmaker said earlier on Wednesday its main assembly line had been completely shut down for an indefinite period.

"The first shift workers will come to work on March 5," the press service said. "A decision to restart the main assembly line will depend on the situation. Talks on the resumption of supplies are continuing."

The plant has been supplied with 35% of its demand for component parts, its spokesman said.

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.

AvtoVAZ briefly suspended production in early February over difficulties with suppliers.

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