Known as Avtovaz for short, it is one of the least efficient automobile factories anywhere in the world — each worker produces, on average, eight cars a year, compared with 36 cars a year at General Motors’ assembly line in Bowling Green, Ky., for example.This factory persists because of subsidization and bailouts from the Russian government. The details of the bailout are less invasive (no executive firings or requests for a new business plans), but I see that as political hubris that unintentionally serving the role of deterring more firms from finding government bailouts attractive.
The factory, a monument to Soviet gigantism in industrial design, is a panoramic sprawl of pipes and smokestacks on a bank of the Volga River, 460 miles southeast of Moscow. It employs 104,000 assembly line workers, many of whom still toil with hand-held wrenches.
Hat Tip: Dave Esposito for the link.