VAZ refused Borisov generators, Minsk region
Workers of the Borisov Plant of Automotive Electrical Equipment (JSC “BATE”) say, the Volga Automobile Plant (AvtoVAZ) refused delivery of a large batch of automobile generators manufactured in Borisov, quoting their unsatisfactory quality.
A delegation of BATE experts was sent to Toliatti however failed to overturn the decision.
This was not the first industrial dispute of the kind. Traditionally, Borisov plant is one of the largest suppliers of starters and generators to the assembly line of VAZ. The Russian auto giant aims to have several suppliers of components and mounts to avoid price dictates and deterioration of quality and to encourage competition among suppliers.
The delivery refusal of generators from Borisov could seriously impair the financial and economic situation at the BATE, particularly during the foreign currency crisis in Belarus.
This Borisov company is one of the largest in the city (3.5 thousand employees), it managed to stay afloat largely because of the secondary market. Given the lifetime of starters and generators manufactured at the Borisov BATE was usually less than the lifetime of a car, there was a steady demand for these products from the owners of old cars from Russia and other CIS countries. Therefore, the affordable price of Borisov starters and generators, and perhaps surprisingly, their relatively poor quality, contribute to their sales at the secondary market. Nevertheless, a temporary moratorium of the AvtoVAZ, the main consumer of the BATE products, on the deliveries of generators, indeed, severely damages the image of the Belarusian enterprise.
Last week, Belarusian Foreign Minister Makei participated in the foreign ministers’ meeting of the Eastern Partnership and Visegrad Group initiative hosted by Warsaw. The Belarusian FM emphasized Belarus' interest in cooperation in the transport sector, which could be due to Belarus’ desire to export electricity surplus after Belarus finished construction of the nuclear power plant in Ostrovets. Minsk expressed concerns about Warsaw’s stance on the Belarusian NPP, as it refused to buy electricity from Belarus and supported Vilnius’ protest on this issue. Following accusations by the Belarusian leadership and the state media against western states, including Poland, of training "nationalist militants", Minsk did not agree on the visit of the European Parliament deputies from Lithuania and Germany to Belarus and to the NPP construction site near Ostrovets in particular. In addition, the Belarusian authorities have stepped up efforts to enforce education in Russian in Polish-language schools in Grodno and Vaukavysk. Should a rift in Belarusian-Polish relations persist, the Belarusian authorities are likely to step up the pressure on the Polish-speaking minority in Belarus.