Putin Power: Even Russian automakers to get a bailout?
Lada C Concept - Click above for a high-res gallery
According to The Detroit News, Avtovaz, Russia's largest car maker and the home of Lada, is in line for government help. The Russian car industry is faring even more poorly than its counterpart in the U.S., with a 60% drop in sales being predicted. To assist Avtovaz with payments to creditors, a lifeline of more than 20 billion rubles is being discussed (upwards of $588 million USD), which would be close to Avtovaz's total debt to suppliers and banks.
It is also being reported that Avtovaz is looking to sign an investment memorandum for 90 billion rubles ($2.7 billion USD) with a cartel of state-run banks. Compared to the sums being doled out in the U.S. that's not a lada money (sorry, had to...), but if Avtovaz can get the agreements signed, it should be in better standing.
Gallery: Lada C Concept
[Source: The Detroit News]
Reader Comments (Page 1 of 2)
Damien 6:59PM (3/31/2009)
This car's interior is looking pretty good actually!
And yeah, their bail-out is tiny compared to the billions doled out on this side of the pond.
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Sektor 6:15PM (3/31/2009)
I wasn't aware that there were automakers in Russia.
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Swede 6:21PM (3/31/2009)
AvtoVAZ, GAZ, Kamaz, ZiL, UAZ. Kamaz makes mean trucks.
Taglane 6:47PM (3/31/2009)
lol everything has a z. Never heard of any of these, tbh.
john 7:30PM (3/31/2009)
were you aware of the plant near the car? going green literally ;)
Rich 7:37PM (3/31/2009)
Oh man, and everything from Detroit has an "r" in it! It must be a conspiracy!
The "AZ" doesn't stand for Arizona: it stands for "Automobilny Zavod" ("автомоби́льный заво́д") which means "automobile plant".
I've driven several Ladas and learnt to drive in one. Along with Skoda and Yugo, they were the butt of many people's jokes. But when you could have a reliable car for half the price of the nearest offering from Ford or Vauxhall, it was the owners who were laughing. Why buy a bog standard Fiesta when you could have a proper (rear wheel drive) car for half the price?
Lada importing to the UK was killed off by a combination of tighter emissions regulations and GM (yes, that GM) reneging on a deal to provide electronic ignition systems. This was around the time Lada announced the revised Niva, which was a GM collaboration. Evidently GM didn't want Lada cutting into their profits (or increasing their losses) any more.
The original Niva was the best little jeep (with a small "j") anyone was making (it still is). Fully independent front suspension, no train tracks to lug it down, and a relatively efficient 1.7 liter engine. They also made a stretched version, which probably inspired Jeep to make the stretched Wanker -- erm Wrangler.
Lada has also been investing in electric vehicles for decades. It's quite nice to hear they'll possibly outlive GM...
Korben Dallas 7:51PM (3/31/2009)
Yes, but then again: is there anything you _are_ aware of?
ambientFLIER 11:17PM (3/31/2009)
You seriously have NEVER heard of Kamaz trucks? The ones that destroy the competition when it comes to hard-core off roading and heavy duty work? Or perhaps from the Baja 1000? http://karavshin.org/blogs/black-coffee/archive/kamaz-flying.jpg Really?
vor 4:22PM (4/01/2009)
everything has a z in it, because the Z stands for Zavod or Plant (Factory). The name brands are things like: Lada(AvtoVAZ) and Volga(Gaz). Lada Neva sold well even in europe back in the day. Romania has Dacia, Serbia had Zastava wich made the Yugo you probably heard of the Yugo and Czech has Skoda.
Bloke 7:36PM (4/01/2009)
GM, UAZ, GAZ, AutoVAZ, etc etc.
the_MVP_X 6:17PM (3/31/2009)
Ewww, that thing it's really ugly and communist and KGB ish....
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Sektor 6:20PM (3/31/2009)
I didn't know the adjective "communist" could be applied to looks.
the_MVP_X 6:21PM (3/31/2009)
It can if the things are made by commies in the communist way.
Sektor 6:24PM (3/31/2009)
Russia isn't communist (anymore). You seem to be stuck in the Cold War days.
the_MVP_X 6:28PM (3/31/2009)
C'mon Putin it's a former KGB officer, he still runs thing there, as for the communist people, what do you think, that they got evaporated? The system it's still there and will probably remain there for many years.
Sektor 6:35PM (3/31/2009)
There are NO communist countries anymore. The closest to it would be Cuba, but even then...
The KGB doesn't exist anymore either. And the KGB was the Soviet counterpart to the CIA. It was an intelligence agency; as such, it doesn't really have a communist or capitalist ideology.
Jake B 6:35PM (3/31/2009)
They are still red to a degree, but no one cares because they aren't the force they once were. They have been reduced to buying 34 ruble cheeseburgers off of the Mcdonald's value menu.
wolverinejoe80 6:18PM (3/31/2009)
looks like Hyundai's veloster concept.
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Sektor 6:19PM (3/31/2009)
Indeed.
Raz 9:43PM (3/31/2009)
Not really, more like an Audi A1 ripoff, especially with that color