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11:45
GM-AVTOVAZ TO SHUT DOWN ASSEMBLY LINE IN AUGUST

Samara, July 31 (Interfax) - The GM-Avtovaz joint venture in Togliatti, Samara region, will halt production of the Chevrolet Niva in the August 3-31 period in connection with Avtovaz's decision to shut down its own assembly line, the venture said on its web site.

"Beginning September 1 the assembly line will operate one eight-hour shift five days a week," GM-Avtovaz said.

Idled production workers will receive two-thirds of their regular wages, in accordance with Russia's Labor Code. Non-production personnel will only receive compensation for services performed in the period.

The joint venture's assembly line will have operated just one week since a summer holiday shutdown July 13-26.

The assembly line has been operating on just one eight-hour shift five days a week. Previously it had operated two eight-hour shifts.

The production plan was revised due to the difficult car market.

GM-Avtovaz, a joint venture between Avtovaz and GM, began producing cars in September 2002.

Avtovaz's assembly line will also be shut down in August due to the need to reduce car inventories in order to replenish working capital.

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