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Another Western plot to punish Moscow for standing up to the U.S.

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  • Another Western plot to punish Moscow for standing up to the U.S.

    Will Vlad ever run out of windmills to charge?

    TOGLIATTI, Russia -- In the heartland of Russia's struggling auto industry, people blame Renault-Nissan, the majority owner of AvtoVAZ, for their economic hardship, not their country's rulers.

    The Volga river city of Togliatti is the nearest there is to a Russian version of Detroit as the center of production for the market’s best-selling Lada brand. The city was hit hard when Russia's economy slowed, aggravated by a fall in global oil prices and Western sanctions over Russia's role in the Ukraine crisis.

    Russian consumers responded to the slowdown by cutting their biggest item of discretionary spending, and for most people that meant putting off buying a new car; a body blow for a city where car making underpins the local economy. Thousands of staff at AvtoVAZ, the company that dominates the city about 1,000 km (600 miles) southeast of Moscow, lost their jobs, and a web of businesses that depend on the auto industry saw their revenues drop.

    Residents share an opinion about who is to blame: Renault-Nissan and the recently departed head of AvtoVAZ, the Swedish national Bo Andersson.

    "The company's foreign owners are doing nothing to protect the workers," local member of parliament Leonid Kalashnikov wrote in an election pamphlet. "It's not surprising that today Togliatti is on the very brink of a social explosion."



    "AvtoVAZ is being wrecked more than anything by Bo Andersson and his henchmen, by the invaders," said Oleg, a jobless former AvtoVAZ employee who was standing in a line at a labor exchange in Togliatti last month. Yevgeny, a former procurement specialist who lost his job at AvtoVAZ, said foreign producers were wrecking AvtoVAZ so they could then take its market. "It's obviously sabotage," he said.



    http://europe.autonews.com/article/2...or-its-decline
    Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.

  • #2
    Andersson got fired already back in March of this year. And the company was hugely unprofitable already before he was brough in...
    http://www.themoscowtimes.com/opinio...az/562024.html
    Effectively he could not be allowed to switch to suppliers that could provide sufficient quality parts for the product, because the protected Russian suppliers would run to the Kremlin and demand to be retained, even if incapable and incomptent. And he couldn't be allowed reduce staff, or even salaries or work hours, to try to make the business profitable either.

    And so this Russian operation will continue to use cruddy parts for a cruddy product, that does not sell, while the CEO cannot cut staff, reduce salaries, change suppliers, or anything else that might actually make the business eventually profitable.
    The next AvtoVAZ chief will have to accomplish the same goal as his predecessor: bring new models to market while constantly improving quality. Only now he will have the added burden of replacing foreign suppliers with domestic ones without compromising on quality and raising worker salaries without cutting staff. And he'll have to do all of that amidst an economic crisis and shrinking demand.

    It is a job for a Russian fairytale hero — anyone else would fail. But then, Russia's planned-capitalist economy tends to follow its own peculiar logic.
    It's of course because the objective is not really to be commercially viable, but to provide sinecures of various kinds. As long as that will last. Which arguable is the Million Ruble Question about all of the current Russian economy? Question is if anyone in a position to decide things in Russia much understands economy anymore?

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    • #3
      Originally posted by Urban hermit View Post
      Will Vlad ever run out of windmills to charge?
      You should re-read the article. Nowhere did any of the people interviewed suggest a Western plot to punish Moscow for standing up to the US. In fact, the article itself suggest that the Russian employees object to a different management culture in that foreign managers favour job cuts due to declining sales, whereas local workers prefer pay cuts and reduced hours (presumably so that as many people as possible will still have at least some income). Some interviewed also suggested a deliberate attempt by foreign managers to undermine the company so that its market share could be appropriated by foreign manufacturers. They also objected to the displacement of local suppliers in favour of foreign firms. The only person who suggested "a western plot to punish Russia" was the Reuters reporter himself who tossed in the gratuitous paragraph:
      Blaming foreigners for Russia's misfortune is a common theme under the rule of President Vladimir Putin. The Kremlin promotes the view that the economic crisis is in part a Western plot to punish Moscow for standing up to the U.S

      Comment


      • #4


        People will not buy a pos car. That's one of the things that killed Detroit. Build cheap stuff and not many people will spend their money on junk...
        Credo quia absurdum.


        Quantum mechanics describes nature as absurd from the point of view of common sense. And yet it fully agrees with experiment. So I hope you can accept nature as She is - absurd! - Richard Feynman

        Comment


        • #5
          Originally posted by Johan Banér View Post
          And so this Russian operation will continue to use cruddy parts for a cruddy product, that does not sell
          Actually Avtovaz is the biggest seller of cars in Russia. In 2015 1.6 mln cars were sold. Of them 269 thousand Avtovaz Lada types. The three biggest companies on the market were (in order of market share) Avtovaz-Renault-Nissan, Hyundai-KIA and Volkswagen.
          http://serega.icnet.ru/CarSaleAuto_2015_Russia.html
          Last edited by Artyom_A; 17 May 16, 06:38.

          Comment


          • #6
            Originally posted by Artyom_A View Post
            Actually Avtovaz is the biggest seller of cars in Russia. In 2015 1.6 mln cars were sold. Of them 269 thousand Avtovaz Lada types. The three biggest companies on the market were (in order of market share) Avtovaz-Renault-Nissan, Hyundai-KIA and Volkswagen.
            Yes, clearly it is. It does however also badly need for you to go buy another of of their products, like now. They're not selling enough. For whatever reason. The odd thing about actual business is that such situations cannot last indefinitely. Something's got to give.

            Unless there's government bailout. But that just means the Russians as tax payers get to pay for the cars, without getting the actual cars...

            Comment


            • #7
              Originally posted by Johan Banér View Post
              Yes, clearly it is. It does however also badly need for you to go buy another of of their products, like now. They're not selling enough. For whatever reason. The odd thing about actual business is that such situations cannot last indefinitely. Something's got to give.

              Unless there's government bailout. But that just means the Russians as tax payers get to pay for the cars, without getting the actual cars...
              Clearly not good for tax payers to subsidise inefficient car makers. But Russia is hardly the only country that does it. US taxpayers subsidise Ford and GM.
              "To be free is better than to be unfree - always."

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              • #8
                Well, the situation when a company is a leader on a rapidly rising market and doesn't manage to make profits raises serious question about the quality of their managers indeed. And I don't understand what is the topic starter's point. In every country workers who got fired would be blaming their company staff first of all. There is nothing unusual here.

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                • #9
                  Originally posted by Skoblin View Post
                  The Kremlin promotes the view that the economic crisis is in part a Western plot to punish Moscow for standing up to the U.S
                  Eh, wasn't this view was promoted by Mr. Obama personally (not to mention many American members on this very forum)?

                  Comment


                  • #10
                    Originally posted by Surrey View Post
                    Clearly not good for tax payers to subsidise inefficient car makers. But Russia is hardly the only country that does it. US taxpayers subsidise Ford and GM.
                    Not much option, as the CEO originally brought in from GM gets fired for trying to fix the problem, meaning his successor needs to fix it while having all the potential tools for it removed beforehand.

                    I mean the Renault-Nissan group is the majority owner and clearly wanted its CEO to fix the profitability, this however being politically unacceptable in Russia is sooner or later going to mean the Russian government needs to pay Renault-Nissan here. Or the company folds.

                    Though in fairness, Renault will probable sell it first. Unclear who wants to buy it under the conditions though. Nationalisation possibly? Russians pay again.

                    AutoVAZ is perfectly commercially salvable, if it will just be allowed politically. The US govt bailing out GM isn't really a sign of either wisdom or strength. At least the US govt. didn't decree trying to run the company in a financially sustainable way was politically out of bounds...

                    Comment


                    • #11
                      It is a rather obvious dig at the Russian apparent inferiority complex as manifested by seeking a "Western" conspiracy behind every setback that befalls Russia.

                      Be it a failing car manufacturer, the Maidan uprising or the Eurovision song contest.

                      OP is known for starting meaningless threads with rather provocative titles, abandoning them when faced with counterarguments, just to start again elsewhere.
                      Last edited by Snowygerry; 17 May 16, 07:31.
                      Lambert of Montaigu - Crusader.

                      Bolgios - Mercenary Game.

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                      • #12
                        Originally posted by Skoblin View Post
                        You should re-read the article. Nowhere did any of the people interviewed suggest a Western plot to punish Moscow for standing up to the US. In fact, the article itself suggest that the Russian employees object to a different management culture in that foreign managers favour job cuts due to declining sales, whereas local workers prefer pay cuts and reduced hours (presumably so that as many people as possible will still have at least some income). Some interviewed also suggested a deliberate attempt by foreign managers to undermine the company so that its market share could be appropriated by foreign manufacturers. They also objected to the displacement of local suppliers in favour of foreign firms. The only person who suggested "a western plot to punish Russia" was the Reuters reporter himself who tossed in the gratuitous paragraph:
                        So the headline of the article is misleading?
                        Russia's Detroit blames Renault-Nissan for its decline
                        I didn't write that.
                        Nor did I write this gem
                        AvtoVAZ is being wrecked more than anything by Bo Andersson and his henchmen, by the invaders," said Oleg, a jobless former AvtoVAZ employee who was standing in a line at a labor exchange in Togliatti last month. Yevgeny, a former procurement specialist who lost his job at AvtoVAZ, said foreign producers were wrecking AvtoVAZ so they could then take its market. "It's obviously sabotage," he said.
                        That is in the text of the article..as is this,

                        Yet the hardship does not diminish the high regard in which people in Togliatti hold Putin. That stands in sharp contrast to their disdain for the automaker's foreign managers. "The nationalistic, patriotic, imperial sentiments hold sway," said Pyotr Zolotaryov, the boss of Unity, an independent trade union at AvtoVAZ. "If you're talking about Putin, people support him. They don't pay attention to their own impoverished existence."
                        Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.

                        Comment


                        • #13
                          Originally posted by Snowygerry View Post
                          It is a rather obvious dig at the Russian apparent inferiority complex as manifested by seeking a "Western" conspiracy behind every setback that befalls Russia.

                          Be it a failing car manufacturer, the Maidan uprising or the Eurovision song contest.

                          OP is known for starting meaningless threads with rather provocative titles, abandoning them when faced with counterarguments, just to start again elsewhere.
                          The OP works for a living and can not always reply.
                          But he is well aware of his distractors who ignore the fact the the OP posts current news story's in the current events sections of a forum dedicated to current events. It is a novel idea I can up with on my own....
                          It works like this....you actually search out news from other country's p, then you present them to other forum members to see where the conversation goes.
                          There is a method to my nasty habit of sharing current events on a forum dedicated to current events....
                          It is the evil idea that perhaps we can share current events and discuss them.
                          But alas, there are some people who only desire to attack the OP, and not the news source or the information in the article.
                          It is clear you have agenda.
                          Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.

                          Comment


                          • #14
                            Originally posted by Urban hermit View Post
                            So the headline of the article is misleading?
                            Russia's Detroit blames Renault-Nissan for its decline
                            I didn't write that.
                            It's not their headline that's misleading - after all, the headline says the workers blamed Reneault-Nissan, which is true. It is your headline which is misleading, since nowhere in the article did any of the workers blame this on a western plot to punish Moscow for standing up to the US. That was your own embellishment.
                            Originally posted by Urban hermit View Post
                            Nor did I write this gem
                            AvtoVAZ is being wrecked more than anything by Bo Andersson and his henchmen, by the invaders," said Oleg, a jobless former AvtoVAZ employee who was standing in a line at a labor exchange in Togliatti last month. Yevgeny, a former procurement specialist who lost his job at AvtoVAZ, said foreign producers were wrecking AvtoVAZ so they could then take its market. "It's obviously sabotage," he said.
                            Again, they are essentially accusing the company of intentional mismanagement. They are not suggesting a Western plot to punish Moscow.
                            Originally posted by Urban hermit View Post
                            That is in the text of the article..as is this,
                            Yet the hardship does not diminish the high regard in which people in Togliatti hold Putin. That stands in sharp contrast to their disdain for the automaker's foreign managers. "The nationalistic, patriotic, imperial sentiments hold sway," said Pyotr Zolotaryov, the boss of Unity, an independent trade union at AvtoVAZ. "If you're talking about Putin, people support him. They don't pay attention to their own impoverished existence."
                            OK, so they are patriotic and they like Putin. None of them suggested the problems with the auto manufacturer had any connection to any supposed Western plot against the Russian government.

                            Comment


                            • #15
                              The Swedish CEO is clearly to blame. The Swedes are capable of anything.
                              Any man can hold his place when the bands play and women throw flowers; it is when the enemy presses close and metal shears through the ranks that one can acertain which are soldiers, and which are not.

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