OREANDA-NEWS. Almost all Russian automobile enterprises cannot compete with European plans in product costs because of too low production volume. This statement was made by AVTOVAZ president Bo Andersson at Automotive News Europe congress. According to him, the breakeven point for Russia is about 175,000 vehicles per year. This compares to Europe, where an average automobile plant produces about 200,000-400,000 vehicles annually, Za Rulyom.RF reports.

"I would say that only five of fifteen automobile plants operating in Russia are profitable," - Bo Andersson said. Two of these successful enterprises are AVTOVAZ and IzhAvto (total planned production capacity exceeds one million vehicles per year, actual production in 2014 is 575,000 vehicles), other three plants are Hyundai-Kia plant in St. Petersburg (production capacity and volume in 2014 is 230,000 vehicles), Volkswagen Group enterprise in Kaluga (225,000 and 185,000 vehicles respectively) and Renault Russia in Moscow (188,000 and 150,000 vehicles).

Bo Andersson refused to comment on the withdrawal of General Motors from Russia and stoppage of all assembly projects (except for the  Chevrolet Niva), having said: "I have enough own problems." However, he mentioned that AVTOVAZ had benefited from this event considerably: its market share had increased, and many of former Opel and Chevrolet dealers had become Lada dealers. Lada dealer network added 16 such companies only in 2015.