REUTERS
Ukraine's major car manufacturer Zaporizhia Automobile Building Plant (ZAZ) has stopped the production of Lanos subcompact cars and plans to focus on the production of commercial vehicles, according to UkrAVTO Corporation's press service.
"We have suspended the production of Lanos, which was caused by the country's economic situation and a decrease in demand for the vehicles, as well as by imports of low-priced used cars bypassing customs clearance," it said.
As reported, the company will focus on the manufacture of commercial vehicles.
Read alsoUkraine boosts vehicle output by over 77% in nine months
In 2016, ZAZ posted UAH 602.81 million (US$ 22.3 million) in net loss, which was 50% down from 2015.
The plant completely halted production from December 2014 to April 2015 in connection with the general decline in the Ukrainian economy and car sales.
UNIAN memo. Zaporizhia Automobile Building Plant (ZAZ) is the only enterprise in Ukraine, which has the complete cycle of passenger cars production, including stamping, welding, painting, trimming the bodies and assembling the vehicles. The enterprise is part of UkrAVTO Corporation.
UkrAVTO Corporation is the major importer and official dealer of over 20 automotive brands, with complete production cycle. The corporation owns a controlling stake in ZAZ Plc. UkrAVTO has over 400 service centers across Ukraine.
The Daewoo Lanos is a subcompact car produced by the South Korean manufacturer Daewoo from 1997 to 2002, after being car of the year it continued to be produced under license agreements to the present in various countries worldwide.