Report: Russia's AvtoVAZ finally turns a profit after many years

During the first quarter of 2010, Russian automaker Avtovaz lost 2.6 billion rubles ($85M U.S.). In the second quarter it made almost a third of that back when it posted a net profit of one billion rubles ($32.7M U.S). The spike came courtesy of Russia's cash-for-clunkers program, which more than doubled the firm's sales over Q1 numbers to 149,100 cars.

The cars that sold were reported to be mainly "older and cheaper models." In response, Russian Prime MInister Vladimir Putin advised Avtovaz CEO Igor Komarov to modernize the company, rather than flogging ancient Lada designs even if the flogging is good. Komarov said Avtovaz is sending a team of 500 to study Renault's manufacturing methods, which could mean they're finally getting around to that technology sharing broached almost a year ago. Now if we could just get that Lada C concept built...

[Source: BBC]