Business

Lada maker Avtovaz sees losses double as sales slide

Lada
Image caption Avtovaz can assemble more than 800,000 cars a year

Russia's largest carmaker, Avtovaz, has said its loss doubled in 2009 due to poor sales during the financial crisis.

The Lada maker reported a net loss of 49.2bn roubles ($1.6bn, £1.1bn), against a loss of 24.7bn roubles in 2008. Revenue fell 45% to 92bn roubles.

However, the company hopes to return to profit this year, as it has been the biggest winner of a Russian car scrappage scheme launched in March.

Avtovaz also plans to use Renault's know-how to build a new budget car.

The French carmaker owns a quarter of the Russian company.

Avtovaz has the capacity to assemble more than 800,000 cars a year. However, in 2009 it sold fewer than 350,000 cars.

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