Lada Came About Through An

ada came about through an As one motoring writer put it: arrangement between Fiat Ladas were assembled by people Land the Russian govern- who didn’t care, for customers ment to produce obsolete Fiats who had no choice. under licence. However, after a few years Russia booted Fiat out It’s not that the old Ladas are and went it alone, not solid. It’s more and despite sell- a question of qual- ing large numbers ity control. You get of cars, mainly on good ones, you get the price, the ve- bad ones, but even hicles themselves the few really satis- were never a great fied owners report success outside that Ladas never Russia. quite have every- thing working Ladas might right at the same have been more time – there’s al- successful had ways some niggly the Italians stuck problem, large or around to run the small. show, but the whole venture LADA AutoVAZ, the company that quickly turned to custard; as part Official name:AvtoVAZ (AutoVAZ of the deal, the cash-strapped in English). makes Ladas, was nearly bank- Russians paid Fiat in steel, but rupted by Boris Berezovskii, a mil- the steel they provided was crap, Owned by: State holding com- lionaire friend of former Russian which is why 1970s Fiats, Lan- pany Rostekhnologia (75%), president Yeltsin. Berezovskii was cias & Alfa Romeos all rusted to plus Renault (25%) chairman of a society connected to AutoVAZ and was able to buy nothing in a few years (the canny Current situation: Eastern Russians kept the good steel for Europe’s largest single car Ladas in bulk at ridiculously low themselves). company, AutoVAZ used to have prices. He then onsold them for 70% of the Russian domestic cash to the public and took his Under Russian management, car market. As well as traditional time to pay AutoVAZ. the Lada quality control was Lada models, AutoVAZ makes shocking. We know of a man a variety of newer models, few AutoVAZ survived, but is now of which sell well outside Rus- owned by the state-owned Roso- who bought a brand new Lada sia. Lada is still the market four-wheel drive but could not leader, but its market share has boronexport and builds new cars, take it out on motorways because dropped to 26%, with Lada sales reputedly under the watchful eyes the body was vibrating so much. down by nearly half. In 2008, of the Russian mafia. Or the lady who owned a near- Renault bought a 25% stake in new Lada Samara. She blew three AutoVAZ for $1 billion, and now In these days when Eastern clutches in 50,000km. After that faces losing the lot. AutoVAZ carmakers can provide you with currently has debts and losses a new car carrying a five year the gearbox collapsed internally. of around $2.2 billion. guarantee for under $20,000,

The mechanic who ordered Chances of survival: it’s difficult to see the older Lada the new parts sent back two sets uncertain. models surviving far into the 21st of bearings before he was happy AutoVAZ will probably survive in century. with the quality of the brand new some form, but the corruption of replacements. ‘I’ve thrown away the Russian system and strained However, the boxy 1970s alliances with the West make Ladas are so ancient and dread- parts that were in better condition AutoVAZ’s operations vulnerable ful that they are now considered than the ones Lada supplied new,’ to ongoing difficulty • he said. cool •