As “Lada” wants to get out of the crisis

Nicolas Mor (Nicolas Maure), the head of the Russian automaker AVTOVAZ, is struggling on many fronts: too few sold cars, too much staff, too bad reputation. Almost a year 56-year-old Frenchman leads the traditional concern of the brand “Lada” and defines a clear course. “From 2018 we want to cover the production costs,” says Moore. To do this, as an experiment, it relies on the market in Germany. March in Germany can be bought “Lada Vesta”, the new achievement of “AVTOVAZ”.

“Lada” with a stylized sailing boat as a logo is with a margin the largest automaker in Russia. In the West in Soviet times was known of the car “Lada” with their pronounced angular shape. For many years the company is struggling with structural problems which have increased as a result of the sales crisis in Russia. For four years the market halved.


The production company, which is located in Tolyatti, almost a thousand kilometers East of Moscow, has decreased since the mid 2000-ies almost half. Although Lada still dominates the market with 20% of shares, however, to 266 thousand units sold, hardly enough to make a profit. Therefore, in the future more products should be exported.

Thus, the game enters Germany. “Our target group is not only a longing for the days of the GDR,” — said the head of the concern more. He laughs, he’s in a good mood, because in Germany he has nothing to lose. “Don’t expect that we will overfill Germany Russian machines”. The main export goal of “Lada” — a former Soviet Republic. “Later we want to enter the markets of the Middle East, Africa and Latin America.”


“To increase exports to Germany well, but this is unlikely to be enough,” — said the expert Sergey Ivanov from the web portal In 2016, AVTOVAZ was able to ship to Germany about 1600 machines. Moore believes that the increase of 2,000 machines will be a good result. “We want to experience the “West” really picky the European market and show customers that this machine is in Germany and sells well”. A kind of business card against a mediocre reputation.


There are evil jokes that undermine the image of “Lada” and depict the car as an unreliable Soviet clunker. “How to double the value of your Lada? To recharge!” — so bullied on the Internet. Moore protests against such jokes. According to him, before Lada was considered a good alternative to other brands. “We knew they were broken, but we also knew that they are easy to fix,” he says.

Today’s “Lada” is not the same as their predecessor “the Zhiguli”. “It is a perfectly normal car at a very good price, stresses Moore. — We want to produce more competitive, higher quality and more affordable car.”


Care, for example, Constantine Carriers. The engineer leads the pipeline for the production of motors. “Computers inspect every production step. If something is wrong, then the line stops,” he says. Under the control of that tall man made motors partners “Lada” — “Renault” and “Nissan”. The Union of car manufacturers of France and Japan joined in 2008, “AVTOVAZ” to better penetrate the promising Russian market. Prior to that, Renault has helped the Romanian carmaker Dacia to avoid bankruptcy. However, the project “Lada” demanded billions of dollars of subsidies.


Renault much had changed, says Carriers. “During the year we engaged in the modernization to produce the motors Renault”. When visiting the plant to catch the eye of modern robots, and a large unused area. As they say, this is the area for the expansion of production. However, it also shows that the concern healthier by reducing unnecessary.

Over the years, tens of thousands of workers were forced to leave the “AVTOVAZ”. Also at Sea, which were brought here to “Reno” in 2016, the question remains whether to save the work of approximately 50 thousand employees. “Obviously, we have too many employees,” admits Moore.


However, he wants to avoid layoffs. “In this one-industry town like Togliatti, we can’t just dismiss people”. Creating “AVTOVAZ” in 1966, the Soviet planned economy made this place on the Volga industrial city, specializing in the production of cars. There are now problems in many towns, because in a market economy this concept has outlived its usefulness. Only gradually there are alternatives for those facing unemployment.


“AvtoVAZ” purposefully looking for work for redundant staff, says Moore. According to him, this year about a thousand employees can start work in a new call centre of one Russian Bank.


Expert Ivanov does not see any change of course at Sea. He believes that modernization started earlier. “Without the financial assistance of the reorientation is hardly possible.” At the present time there is a recapitalization, in which Renault will have the right to share in excess of 70% of “AVTOVAZ”. Although the image of “Lada” improved “Lada” still worse than any European car,” says Ivanov.


Support and help sometimes comes from President Vladimir Putin. When he was experienced in 2010, “Lada Kalina”, he left for the bright yellow hood of his autograph. “It helps because it creates positive energy, says Moore. But I would prefer that government officials went to the “Odds” than the German cars”.