New car sales are dropping the world over, with seemingly no automaker immune. Car makers from both the United States and Europe are seeking government loans to keep their businesses afloat during these turbulent times, and now Russia’s car industry is looking for a bailout.
According to The Detroit News, Russia’s AvtoVAZ could be in line for up to a $589 billion bailout. AvtoVAZ, Russia’s largest automaker, owes about $1.3 billion to its creditors and suppliers.
“The sum that is being discussed is over 20 billion rubles,” Russian Prime Minister Vladimir Putin said Monday.
Russia’s auto industry has been hit even harder than the U.S.’, with sales expect to fall by 60 percent this year. In comparison, U.S. sales were down about 40 percent during the first two months of the year.
