Bogdan suspends production in September
5 October 2012
Bogdan Motors (LUAZ UK) suspended its production of cars in September due to stagnating demand, Interfax reported yesterday. The company produced only one bus and 26 commercial vehicles last month. This is a sharp contrast to September 2011 when the company produced 2,300 cars, 77 buses and 75 trucks. Overall, vehicle production dropped 34% yoy to 10,743 units in 9M12.
Roman Dmytrenko: We expect the production stoppage to be short-lived. As the company is also in the process of reducing staff, we might see some government support for local car producers in form of subsidies or import restrictions, which at this point are not sufficient for Bogdan to break even.
