FAW-AVTOVAZ collaboration in St. Petersburg faces strain as Lada X-Cross 5 and FAW T77 proposals unfold

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FAW builds crossovers in St. Petersburg under the Lada badge. The planned assembly facility in the city faced renewed questions as disagreements between the two brands surfaced, casting doubt on the project’s future. This update comes from a Telegram channel reportedly close to industry insiders. (источник: Telegram-канал “Russian car”),

Reports indicate that AvtoVAZ had planned to assemble FAW vehicles with later localization, but without a long-term contract with the Chinese automaker. In the process, intermediaries facilitated the delivery of thousands of car kits to VAZ. Over time, friction grew as defects appeared in the supplied bodies and as FAW pushed to adjust terms already agreed upon, leading to a chilling effect on ongoing cooperation. (источник: Telegram-канал “Russian car”),

According to industry observers in St. Petersburg, the Lada plant there has not been producing cars for some time. The situation highlights the fragile balance between localization ambitions and supplier commitments in a high-stakes joint venture environment. (источник: Telegram-канал “Russian car”),

The winter 2023–2024 period saw the debut of the Lada X-Cross 5 and the FAW Bestune T77, announced around the time of a major economic forum in St. Petersburg. A production restart ceremony for the St. Petersburg facility occurred on June 17, but officials have not announced a target date for sales of these new models. Observers note that market readiness, supply chain stability, and local production capabilities will shape the pace of any eventual rollout. (источник: Telegram-канал “Russian car”),

Former executives at AvtoVAZ have weighed in with estimated price ranges for the Lada X-Cross 5, reflecting the company’s push to position the model within competitive segments while navigating the broader regulatory and economic landscape in Russia. These estimates illustrate how price strategies align with localization efforts and brand positioning as the market evolves. (источник: Telegram-канал “Russian car”),

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