NEWS & EVENTS: Breaking News
18.03.2009 10:38
Mar 18. Russian automotive group GAZ pledges to finish 2009 without losses thanks to heavy cost cutting, the group’s executive board chairman Sergey Zanozin said. Earlier the company, which sustained losses due to the lack of market demand, projected 2009 losses of over RUB 5 bn. Zanozin said the company plans to slash expenses by RUB 30 bn and also focus on auto component sales and services to maintain 1.5 mn light commercial vehicles Gazel it has already sold. “We intend to cut costs dramatically …All these measures will allow the group to end the year without losses,” Zanozin said. At the same time, he noted that the company has faced problems with auto sales. “No direct sales are being carried out on the market. Things look quite dim“. He also added that the group projects 2009 earnings at RUB 71 bn. Earlier GAZ said at the moment its aggregate debt equals RUB 44.8 bn, with RUB 22.82 bn repayable in 1Q 2009 and RUB 36 bn by the end of the year.
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