You're reading: Bogdan Corporation produces no passenger cars in September

Bogdan Corporation, one of the largest players on the Ukrainian automobile market, in September 2012 produced no passenger cars at its plant in Cherkasy, while in September 2011 the corporation made over 2,300 cars.

The corporation’s spokesman Serhiy Krasulia told Interfax-Ukraine that last month only one bus was made at the Lutsk plant (in September 2011 – 77 buses) and 26 commercial vehicles were made in Cherkasy (75 in September 2011).

“Thus, the plant is on the verge of stoppage, taking into account the absence of sales of vehicles both on the domestic market due to the absence of effective steps from Ukraine to support the automotive industry and stimulate the market, and on foreign markets due to the introduction of a vehicle recycling tax in Russia – the key export market of the corporation,” he said.

Taking into account the present situation, in January-September 2012 the corporation cut production of vehicles by over a third year-over-year, to 10,743.

As reported, Public joint-stock company Bogdan Motors Automobile Company, which unites the assets of Bogdan Corporation, from January through August 2012 saw UAH 66.4 million in consolidated loss, while in H1, 2012 its losses stood at UAH 31.554 million.

The company said the pace of growth in its loss was catastrophic.

The situation forces the corporation’s companies to reduce workforce.

Bogdan Motors unites two modern plants – an automobile plant in Cherkasy (Lada and Hyundai cars, cars under its own brand) with a capacity of 120,000-150,000 cars per year, and a bus and trolleybus plant in Lutsk with the capacity of 6,000 vehicles per year.

Bogdan Motors Automobile Company closed 2011 with net losses of UAH 5.886 million, which is 43.4 times down on 2010. Net revenues for product sales in 2011 rose by 2.3 times, to UAH 3.953 billion.