AvtoVAZ to use prisoners to bolster workforce

RUSSIA’S largest car manufacturer, AvtoVAZ, has sought the assistance of a regional prison service in helping it plug a labour shortage caused by the ongoing conflict with Ukraine.

According to a report published by Automative News Europe this week, the Samara region branch of Russia’s federal prison service, FSIN, said it had met with AvtoVAZ to discuss the use of prisoners to help increase the pace and volume of production.

“Taking into account the extremely tense situation on the labour market of Tolyatti and the Samara region, the plant’s representative asked FSIN management for support and assistance in selecting staff for the enterprise from those sentenced to forced labour,” said an FSIN spokesperson.

AvtoVAZ declined to comment on the situation.

The request to use prisoners sentenced to forced labour comes as the manufacturer faces extreme staff shortages, with many working-age men being drafted into military service. Others have simply abandoned their position and fled the country to avoid being drafted.

The Russian manufacturer is reportedly struggling to fill staff vacancies as it attempts to meet increased production targets prompted by the withdrawal of Western car-makers from the country, and the boycotting of sales by many others.

Sufficient staff may not be the only issue facing the Tolyatti-based company.

Component shortages have forced AvtoVAZ to bring forward a scheduled three-week company holiday, the military campaign in Ukraine and related Western sanctions severely impacting external partnerships and the supply of parts.

The company said it is working to establish new logistic corridors and had found ways to replace more than 200 cars parts that “some countries were refusing to export”. It said uninterrupted production of its products “will not be possible from the second half of May 2023”.

In October last year, Ford, Kia, Mercedes-Benz and Volkswagen have all separately announced plans for withdrawal of production from and importation to Russia.

At the time, domestic and Chinese car-makers appeared to be filling the void, with GWM and Geely reportedly gaining market share. It seems that situation is also facing an uphill battle.

Vehicle production across Russia collectively totalled just 450,000 units last year (2022), the lowest number since the collapse of the Soviet Union in 1991.

Russia’s unemployment rate dropped to a record low 3.3 per cent in April, highlighting the labour shortage stifling economic growth.