AvtoVAZ fails to agree lower supplier prices
AvtoVAZ is in the process of reorganising its purchasing organisation which will now come under the wing of the successful Renault-Nissan Purchasing Organisation (RNPO)
An attempt by AvtoVAZ to agree lower prices with its main suppliers has failed, according to a report in the Vedomosti business daily newspaper. While negotiations between AvtoVAZ and its suppliers did bear fruit in some areas with some suppliers agreeing to increase payment terms to 60-70 days, most refused AvtoVAZ's request that suppliers drop prices by 5%. A representative of MMK, which is a leading automotive steel sheet supplier said that the company had not changed the terms of its 2014 agreement with AvtoVAZ and would not revise it. Steelmaker NLMK also said that prices were not changed in 2014.
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