In the late 1990s, Lada Canada supported a rally operation in the Canadian Rally Championship, winning in the 'Production 1750' class on numerous occasions. In 2012, the Lada Granta Cup was launched.
From January 2021 onwards, AvtoVAZ is part of Renault's Lada and Dacia business unit structure. The AvtoVAZ factory is the largest car manufacturer in Russia and Eastern Europe. ==History== ===Establishment=== The company was established in 1966 in cooperation with Fiat, with Viktor Polyakov (later Minister of Automobile Industry) as director, and Vladimir Solovyov as chief designer, and intended to produce popular economy cars that would meet the growing demand for personal transport.
It was set up as a collaboration between Italy and the Soviet Union and built on the banks of the Volga River in 1966.
The cost of the VAZ plant was estimated at $800 million in 1970 (equivalent to $ billion in ).
Production was intended to be 220,000 cars a year, beginning in 1971 (other sources listed 300,000 in 1971); car production actually began before the plant was finished in 1970.
Unlike Western automakers, though, a large proportion of the components for the cars were made entirely in-house; for example, the Togliatti works contained its own foundry for manufacturing steel from raw iron ore, and even made its own tyres and glass from raw materials. ===1970s=== The first VAZ-2101 was produced on 22 April 1970, the 100th anniversary of Lenin's birth.
About 22,000 VAZ-2101s were built in 1970, with capacity at the end of 1973 reaching 660,000 a year; 21 December, the one-millionth 2101 was built.
Later in the same year, a VAZ-Autoexport team earned their first prize, the Silver Cup in the 1971 Tour d'Europe. In the 1970s–1980s, the Autoexport racing team, using different Lada models, participated in different motorsport competitions.
Production was intended to be 220,000 cars a year, beginning in 1971 (other sources listed 300,000 in 1971); car production actually began before the plant was finished in 1970.
In 1971, three sport cars based on the 2101 model took part in the Soviet Winter Rally Championship.
Later in the same year, a VAZ-Autoexport team earned their first prize, the Silver Cup in the 1971 Tour d'Europe. In the 1970s–1980s, the Autoexport racing team, using different Lada models, participated in different motorsport competitions.
A deluxe version of the sedan, VAZ-2103, which was based on the Fiat 124 Special and featured a new 1.5 L engine and twin headlights, was introduced in 1972.
The body style with two round headlights was manufactured until 1988. The VAZ-2106, introduced in December 1975 as an updated version of the VAZ-2103, was based on the 1972 Fiat 124 Special T, featuring different interiors and new 1.6-L engine.
About 22,000 VAZ-2101s were built in 1970, with capacity at the end of 1973 reaching 660,000 a year; 21 December, the one-millionth 2101 was built.
The same year, total VAZ production reached 1.5 million. The VAZ plant was described as "ultra-modern" by the Chicago Tribune in a 1973 article.
A third production line was added in October 1974, boosting output to 2,230 cars a day.
In 1974, the original VAZ-2101 was updated with new engines and interiors, whereas the VAZ-2102 underwent the same improvements in 1976.
The 2106 was one of the most popular rear-wheel drive AvtoVAZ models in the past; its production ended in 2001 from Tolyatti, but continued at Izhavto (Izhevsk), ending there in December 2005. In 1974, VAZ was given permission to begin producing Wankel engines under licence from NSU.
Production reached 750,000 cars a year in 1975, making the Tolyatti plant the third-most productive in the world.
The body style with two round headlights was manufactured until 1988. The VAZ-2106, introduced in December 1975 as an updated version of the VAZ-2103, was based on the 1972 Fiat 124 Special T, featuring different interiors and new 1.6-L engine.
In 1974, the original VAZ-2101 was updated with new engines and interiors, whereas the VAZ-2102 underwent the same improvements in 1976.
Work began in 1976, with a single-rotor Lada appearing in 1978; the first 250 of these went on sale in the summer of 1980. After having built a number of prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their own design, the VAZ-2121 Niva, in 1977.
Between 1977 and 1981, AvtoVAZ acquired 30 welding robots from Japanese firms. The original, Fiat-based models included the VAZ-2101 sedan and the VAZ-2102 estate.
Work began in 1976, with a single-rotor Lada appearing in 1978; the first 250 of these went on sale in the summer of 1980. After having built a number of prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their own design, the VAZ-2121 Niva, in 1977.
Work began in 1976, with a single-rotor Lada appearing in 1978; the first 250 of these went on sale in the summer of 1980. After having built a number of prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their own design, the VAZ-2121 Niva, in 1977.
In 1978, a Lada Niva took part in the famous Dakar Rally.
This highly popular and innovative sport utility vehicle (SUV) was made with off-road use in mind, featuring a gearbox with a central differential lock lever, as well as a low- and high-range selector lever. The VAZ-2105, based on the Fiat 124 mechanicals, but modernised and restyled, was introduced in 1979 and marketed outside the Soviet Union under the Riva or Laika trade names, depending on the country.
Work began in 1976, with a single-rotor Lada appearing in 1978; the first 250 of these went on sale in the summer of 1980. After having built a number of prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their own design, the VAZ-2121 Niva, in 1977.
The 2105 was third-best selling automobile platform after the Volkswagen Beetle and the Ford Model T, and one of the longest production run platforms alongside the Volkswagen Beetle, the Hindustan Ambassador, and the Volkswagen Type 2. ===1980s=== In May 1980, a series of mass strikes at the Togliatti plant involving hundreds of thousands of workers was reported by the western press.
The VAZ-1111 Oka microcar was introduced in 1988, and in 1991, its production was transferred to the KamAZ and SeAZ factories. By the late 1980s, AvtoVAZ was suffering from the deterioration of its capital goods, such as tools and machinery, resulting from insufficient levels of investment over a long period.
Between 1977 and 1981, AvtoVAZ acquired 30 welding robots from Japanese firms. The original, Fiat-based models included the VAZ-2101 sedan and the VAZ-2102 estate.
In 1981, Guy Moerenhout Racing made two special models for Lada Belgium: Lada 21011 RS Sport, model with two Weber carburetors and special sport equipment, and Lada Niva Dream, with big wing extension, special colours and larger wheels.
In 1982, the VAZ-2107, a deluxe version of the 2105, was introduced; it featured a better engine, refined interiors, and a chrome radiator grille.
In 1984, the VAZ-2104 station wagon completed the line-up. Based on the success of the Niva, the design department prepared a new family of front-wheel drive models by 1984, which was of a completely domestic design.
The same year, the front sides and radiator grille were restyled on the whole Samara range. A white 2108 became the nine-millionth Lada built, on 24 May 1985, with the ten-millionth, on 9 October 1986, also a 2108.
The same year, the front sides and radiator grille were restyled on the whole Samara range. A white 2108 became the nine-millionth Lada built, on 24 May 1985, with the ten-millionth, on 9 October 1986, also a 2108.
The five-door VAZ-2109 hatchback followed in 1987, and the four-door 1.5-L sedan, the VAZ-21099, was introduced in 1990.
The body style with two round headlights was manufactured until 1988. The VAZ-2106, introduced in December 1975 as an updated version of the VAZ-2103, was based on the 1972 Fiat 124 Special T, featuring different interiors and new 1.6-L engine.
The VAZ-1111 Oka microcar was introduced in 1988, and in 1991, its production was transferred to the KamAZ and SeAZ factories. By the late 1980s, AvtoVAZ was suffering from the deterioration of its capital goods, such as tools and machinery, resulting from insufficient levels of investment over a long period.
The twelve-millionth, a right-hand drive 2109, was produced 6 July 1989.
The first privately owned AvtoVAZ dealership was established by Boris Berezovsky in 1989.
In the Soviet Union, its products used various names, including Zhiguli, Oka, and Sputnik, which were phased out in the 1990s and replaced by Lada for the Russian market.
The five-door VAZ-2109 hatchback followed in 1987, and the four-door 1.5-L sedan, the VAZ-21099, was introduced in 1990.
In the second half of the 1990s, some efforts were made to improve the quality of production, but in 1999, nearly 50,000 cases of cars were still being assembled with missing parts. In 2001, GM-AvtoVAZ, a joint venture with General Motors, was established.
The Kalina had been originally designed in the early 1990s, and its launch was repeatedly delayed, exemplifying the company's difficulty in bringing products to market in time.
Under the original agreement with Fiat, the car could not be sold in competition with the 124 until its replacement (the Fiat 131 Mirafiori) had been released and all Fiat production of the 124 had ceased. Economic instability in the former Soviet Union in the 1990s, tightening emissions, and safety legislation meant that AvtoVAZ withdrew from most Western markets by the late 1997.
In the late 1990s, Lada Canada supported a rally operation in the Canadian Rally Championship, winning in the 'Production 1750' class on numerous occasions. In 2012, the Lada Granta Cup was launched.
The VAZ-1111 Oka microcar was introduced in 1988, and in 1991, its production was transferred to the KamAZ and SeAZ factories. By the late 1980s, AvtoVAZ was suffering from the deterioration of its capital goods, such as tools and machinery, resulting from insufficient levels of investment over a long period.
Dealerships quickly turned into criminal rackets that at times simply stole cars from the factory. ===After privatization=== In June 1991, Bear Stearns was hired by the Soviet government to conduct an appraisal of AvtoVAZ and negotiate a venture with a Western partner, in preparation for the privatization of the company.
They won two league titles as well as the 1996 European Cup. Lada sponsored Aldershot Football Club of the English Football League for two seasons leading up their bankruptcy in 1992.
An independent trade union was started during the same year, as workers deemed the traditional trade union to be too close to the interests of management. In January 1993, AvtoVaz was re-established as a joint-stock company under Russian law.
Despite the state of the Russian economy at the time, demand for AvtoVAZ cars remained buoyant, but widespread corruption in the distribution network led the company to accumulate massive debts. The 110-series sedan was introduced in 1995, two years after its original 1993 deadline.
AvtoVAZ was made part of the business unit structure. ==Company structure== ===Ownership=== After its re-establishment as a joint stock company in January 1993, the ownership structure of AvtoVAZ became opaque, with two different management groups controlling the majority of the shares, one led by company chairman Kadannikov, holding 33.2% through the AVVA company, while another group held 19.2% through the AFC company.
As with many other privatized post-Soviet companies, the financial situation at AvtoVAZ was dire, with workers being unpaid for months at a time. In 1994, Boris Berezovsky's dealership company, called Logovaz, accounted for nearly 10% of the domestic sales of AvtoVAZ.
Despite the state of the Russian economy at the time, demand for AvtoVAZ cars remained buoyant, but widespread corruption in the distribution network led the company to accumulate massive debts. The 110-series sedan was introduced in 1995, two years after its original 1993 deadline.
A five-door version of the Niva, the VAZ-2131, was introduced in 1995. By 1995, car sales, distribution, and spare parts at AvtoVAZ were all controlled by criminal organizations.
Additionally, gangsters were used to control the workers and break strikes. By late 1996, AvtoVAZ had become the country's largest tax debtor, owing $2.4 billion in unpaid taxes.
They won two league titles as well as the 1996 European Cup. Lada sponsored Aldershot Football Club of the English Football League for two seasons leading up their bankruptcy in 1992.
In 1997, the Ministry of Internal Affairs launched Operation Cyclone, an investigation that ultimately uncovered evidence that gangsters connected to AvtoVAZ had carried out at least 65 murders of company managers, dealers, and business rivals. The 1998 Russian financial crisis improved the company's market position, by improving the effectiveness of export sales and making imported cars too expensive for most Russians.
Under the original agreement with Fiat, the car could not be sold in competition with the 124 until its replacement (the Fiat 131 Mirafiori) had been released and all Fiat production of the 124 had ceased. Economic instability in the former Soviet Union in the 1990s, tightening emissions, and safety legislation meant that AvtoVAZ withdrew from most Western markets by the late 1997.
The 2111 station wagon followed in 1998 and the 2112 hatchback completed the range in 2001.
In 1997, the Ministry of Internal Affairs launched Operation Cyclone, an investigation that ultimately uncovered evidence that gangsters connected to AvtoVAZ had carried out at least 65 murders of company managers, dealers, and business rivals. The 1998 Russian financial crisis improved the company's market position, by improving the effectiveness of export sales and making imported cars too expensive for most Russians.
The VAZ-2120 Nadezhda, a minivan based on the Lada Niva, was introduced in 1998.
In the second half of the 1990s, some efforts were made to improve the quality of production, but in 1999, nearly 50,000 cases of cars were still being assembled with missing parts. In 2001, GM-AvtoVAZ, a joint venture with General Motors, was established.
The 2106 was one of the most popular rear-wheel drive AvtoVAZ models in the past; its production ended in 2001 from Tolyatti, but continued at Izhavto (Izhevsk), ending there in December 2005. In 1974, VAZ was given permission to begin producing Wankel engines under licence from NSU.
The 2111 station wagon followed in 1998 and the 2112 hatchback completed the range in 2001.
In the second half of the 1990s, some efforts were made to improve the quality of production, but in 1999, nearly 50,000 cases of cars were still being assembled with missing parts. In 2001, GM-AvtoVAZ, a joint venture with General Motors, was established.
Increased competition from foreign car manufacturers had the company's share of the Russian market fall to 49% in 2002, compared to 56% four years earlier.
In 2003, VAZ presented the concept car Lada Revolution, an open single-seater sports car powered by a 1.6-L engine producing .
Production of the Wankel engine used on some Lada models (mostly the police versions) stopped in 2004. The introduction of the new Kalina B-segment lineup to the market occurred in 2005.
The 2106 was one of the most popular rear-wheel drive AvtoVAZ models in the past; its production ended in 2001 from Tolyatti, but continued at Izhavto (Izhevsk), ending there in December 2005. In 1974, VAZ was given permission to begin producing Wankel engines under licence from NSU.
Production of the Wankel engine used on some Lada models (mostly the police versions) stopped in 2004. The introduction of the new Kalina B-segment lineup to the market occurred in 2005.
In October 2005, control of the company, which had until then been exercised by subsidiaries of AvtoVAZ connected to Kadannikov, was transferred to Rosoboronexport.
March 2007 had the start of production of Lada Priora, a restyled and modernised 110-series model. ===Involvement of Renault-Nissan=== In March 2008, Renault purchased a 25% stake in AvtoVAZ in a US$1 billion deal, with Rostec retaining the remaining 75%.
March 2007 had the start of production of Lada Priora, a restyled and modernised 110-series model. ===Involvement of Renault-Nissan=== In March 2008, Renault purchased a 25% stake in AvtoVAZ in a US$1 billion deal, with Rostec retaining the remaining 75%.
Despite massive layoffs since 2008, in 2016, the company remained unprofitable. ===Groupe Renault takeover=== In October 2016, Renault invested $1.33 billion in another recapitalization of AvtoVAZ, this time without involvement from Nissan, making the company a subsidiary of the French group.
The first stage of the new race series began in Moscow on the Myachkovo race track. ===World Touring Car Championship=== In 2008, AvtoVAZ took part in the WTCC World Championship, raced and developed by Russian Bears Motorsport, although badged as a factory team.
The team raced the Lada 110 in the 2008 season, but ran a trio of Lada Prioras in the 2009 WTCC.
By April 2009, AvtoVAZ was on the verge of bankruptcy, which was only avoided because of a $600 million bailout from the Russian government.
The team raced the Lada 110 in the 2008 season, but ran a trio of Lada Prioras in the 2009 WTCC.
As an anticrisis measure, the Russian government introduced a car scrappage scheme in March 2010.
Avtovaz sales doubled in the second quarter of 2010 as a result, and the company returned to profit.
By the end of 2010, automotive production in Russia had returned to precrisis levels. In 2011, production of the classic Fiat 124-based 2105 and 2107 series models was completely moved from the Togliatti plant to the IzhAvto plant near Izhevsk, to make space for the company's forthcoming 2016 model.
The team scored their first championship points at Imola with renowned BTCC two-time champion James Thompson. Lada withdrew from the WTCC for the 2010 season, but returned in 2012, with TMS Sport entering a Lada Granta WTCC for Thompson in two rounds.
By the end of 2010, automotive production in Russia had returned to precrisis levels. In 2011, production of the classic Fiat 124-based 2105 and 2107 series models was completely moved from the Togliatti plant to the IzhAvto plant near Izhevsk, to make space for the company's forthcoming 2016 model.
In April 2012, AvtoVAZ confirmed the end of the model 2107 (Lada Riva or Lada Nova), after more than 40 years. Sales of the Lada Granta, a subcompact car developed in collaboration with Renault, started in December 2011.
In April 2012, AvtoVAZ confirmed the end of the model 2107 (Lada Riva or Lada Nova), after more than 40 years. Sales of the Lada Granta, a subcompact car developed in collaboration with Renault, started in December 2011.
The Lada Largus was launched in the Russian market in the middle of July 2012.
In August 2012, the Lada XRAY concept car was launched at the Moscow International Automobile Salon.
The second generation of the Lada Kalina, basically a facelifted first generation, was also revealed at the 2012 Moscow International Motor Show.
On 3 May 2012, the Renault-Nissan alliance has signed letter of intent to raise its stake in Avtovaz to 51.01%.
On 12 December 2012, the Renault–Nissan Alliance formed a joint venture with Rostekhnologii (Alliance Rostec Auto BV) with the aim of becoming the long-term controlling shareholder of AvtoVAZ.
In the late 1990s, Lada Canada supported a rally operation in the Canadian Rally Championship, winning in the 'Production 1750' class on numerous occasions. In 2012, the Lada Granta Cup was launched.
The team scored their first championship points at Imola with renowned BTCC two-time champion James Thompson. Lada withdrew from the WTCC for the 2010 season, but returned in 2012, with TMS Sport entering a Lada Granta WTCC for Thompson in two rounds.
The plant, which will be open in 2016, will be built in Ust-Kamenogorsk, in the eastern part of the country, and will produce around 120,000 cars a year. ===Recent developments=== In November 2013, Bo Andersson joined AvtoVAZ as CEO, the first non-Russian to head the company.
The team added a second car for the 2013 season, driven by Alexey Dudukalo, and achieved their best result to date, finishing fifth in their home race in Russia. In 2013, AvtoVAZ returned to the WTCC championship.
By 2014, the company's liabilities exceeded assets by 68 billion rubles, for UK-based Ernst & Young to express "significant doubt" about the company's "ability to continue as a going concern".
In 2014, the Largus got a new modification, the Lada Largus Cross.
In the fall of 2014 AvtoVAZ began production of a new Kalina model, the Lada Kalina Cross. Production of the Lada Vesta, based on a new b\C platform developed by AvtoVAZ in cooperation with Renault-Nissan Alliance, started on September 25, 2015, at Lada Izhevsk manufacturing site.
The team received a new car: the Lada Granta WTCC with the new driver, WTCC World Champion Robert Huff. The team returned for the 2014 World Touring Car Championship season, again fielding a Granta.
In the fall of 2014 AvtoVAZ began production of a new Kalina model, the Lada Kalina Cross. Production of the Lada Vesta, based on a new b\C platform developed by AvtoVAZ in cooperation with Renault-Nissan Alliance, started on September 25, 2015, at Lada Izhevsk manufacturing site.
Starts of sales was held on February 14, 2016. Total Lada sales in 2015 amounted to 269,096 cars, of which 207,389 were built by AvtoVAZ in Tolyatti, while the rest were made by Lada Izhevsk, giving the company a 17.9% share of the Russian automotive market. In March 2016, Nicolas Maure became the company's CEO.
Since the beginning of 2015, the Lada team takes part in the WTCC as Lada Sport Rosneft.
Starting with the 2015 season, Lada Sport currently uses Lada Vesta. ==Sponsorship== HC Lada Togliatti, an ice hockey team currently playing in the VHL, takes its name from the marque.
By the end of 2010, automotive production in Russia had returned to precrisis levels. In 2011, production of the classic Fiat 124-based 2105 and 2107 series models was completely moved from the Togliatti plant to the IzhAvto plant near Izhevsk, to make space for the company's forthcoming 2016 model.
The plant, which will be open in 2016, will be built in Ust-Kamenogorsk, in the eastern part of the country, and will produce around 120,000 cars a year. ===Recent developments=== In November 2013, Bo Andersson joined AvtoVAZ as CEO, the first non-Russian to head the company.
Starts of sales was held on February 14, 2016. Total Lada sales in 2015 amounted to 269,096 cars, of which 207,389 were built by AvtoVAZ in Tolyatti, while the rest were made by Lada Izhevsk, giving the company a 17.9% share of the Russian automotive market. In March 2016, Nicolas Maure became the company's CEO.
In April 2016, Carlos Ghosn, Renault-Nissan Chairman, ceded his AvtoVAZ chairmanship position to Sergey Skvortsov, Deputy General Director of Russian state-owned Rostec, the minority shareholder in Avtovaz.
Despite massive layoffs since 2008, in 2016, the company remained unprofitable. ===Groupe Renault takeover=== In October 2016, Renault invested $1.33 billion in another recapitalization of AvtoVAZ, this time without involvement from Nissan, making the company a subsidiary of the French group.
In September 2017, Nissan sold its AvtoVAZ stake to Renault for €45 million. In December 2018, Renault and Rostec completed the acquisition of all AvtoVAZ shares through their Alliance Rostec venture.
In September 2017, Nissan sold its AvtoVAZ stake to Renault for €45 million. In December 2018, Renault and Rostec completed the acquisition of all AvtoVAZ shares through their Alliance Rostec venture.
In 2018, AvtoVAZ posted a net profit of $90.5 million, its first positive result in a decade.
Starting in December 2019, AvtoVAZ sold Niva cars with Chevrolet branding.
In June 2019, Rostec announced it would reduce its stake in AvtoVAZ to 25%. In December 2019, AvtoVAZ acquired General Motors' stake in their GM-AvtoVAZ joint venture.
That ended in August 2020. The company is a subsidiary of the Alliance Rostec Auto company, in which French Groupe Renault holds a controlling 67.61% stake.
As part of the deal, AvtoVAZ is set to use Chevrolet branding for the Niva models until August 2020, before replacing it with Lada. In January 2021, following a company revamp, Renault said it would integrate Lada and sister Dacia brands into a new business unit.
From January 2021 onwards, AvtoVAZ is part of Renault's Lada and Dacia business unit structure. The AvtoVAZ factory is the largest car manufacturer in Russia and Eastern Europe. ==History== ===Establishment=== The company was established in 1966 in cooperation with Fiat, with Viktor Polyakov (later Minister of Automobile Industry) as director, and Vladimir Solovyov as chief designer, and intended to produce popular economy cars that would meet the growing demand for personal transport.
As part of the deal, AvtoVAZ is set to use Chevrolet branding for the Niva models until August 2020, before replacing it with Lada. In January 2021, following a company revamp, Renault said it would integrate Lada and sister Dacia brands into a new business unit.
All text is taken from Wikipedia. Text is available under the Creative Commons Attribution-ShareAlike License .
Page generated on 2021-08-05