Maxim Sokolov, the chairman of AvtoVAZ, spoke on RBC TV about the possibility that hundreds of people could be drawn into forced labor for car production in the Samara region, with compensation aligned to prison labor norms. Earlier, the Samara Federal Penitentiary Service reported that inmates were invited to work with the concern as production volumes for the Lada Vesta NG rose.
According to Sokolov, the biggest hurdle to growth for the company is not technology, components, or sanctions, but the shortage of workers. He indicated plans to recruit about 4,000 new employees for the Samara factory.
On June 14, Interfax quoted the Samara region’s Federal Penitentiary Service as saying AvtoVAZ intends to involve prisoners in the work. The regional administration noted that the decision aims to support a production increase on the first line of the conveyor for the Lada Vesta NG, targeting gains from September of 28 percent, and from January 2024 of 40 percent. The plan also reflects labor market pressures in Togliatti and the broader region. The Federal Penitentiary Service later noted that inmates could cover up to half of the staffing gap. AvtoVAZ did not comment on these statements. [Citation: Interfax]
“Maybe hundreds, maybe a hundred, maybe two hundred” — Sokolov said to RBC, estimating how many prisoners could be bound to work in Togliatti.
Lada Aura
On June 14, the new Lada Aura was announced to arrive in Saint Petersburg. The car was showcased during the St. Petersburg International Economic Forum. On June 16, German Gref, the head of Sberbank, tested the vehicle, but the sedan reportedly did not operate correctly on the first attempt. Later, AvtoVAZ representatives explained that a test drive issue caused the car to get stuck in gear.
“The protection activated when the engine started with the transmission engaged; it would not start until the gearbox was shifted to neutral,” the concern commented.
Gref received the car from Maxim Sokolov, the head of AvtoVAZ. Also present for the test drive was Anton Siluanov, the Russian finance minister, who steered the car and completed a lap without incident. The Aura, part of the Vesta series, is equipped with a 1.8-liter naturally aspirated engine producing about 122 hp and an automatic transmission. Mass production could begin next year, with prices projected around 2.5 million rubles for a Russian buyer.
Lada Vesta NG
AvtoVAZ announced the first test release of Lada Vesta NG on November 18, 2022, and mass production began in March. The model offers three body styles: a sedan, a wagon SW, and a crossover SW Cross. Standard equipment includes ABS, air conditioning, two front airbags, electric and heated mirrors, heated front seats, power windows, and rear disc brakes. The price for the basic Comfort version with a 90 hp engine and a five-speed manual transmission was listed at 1.239 million rubles; the SW Cross with a 106 hp engine and a five-speed manual was priced accordingly, with some outlets reporting higher on-street prices of around 1.7 million rubles for the basic configuration. [Citation: Autonews.ru]
In mid-June, the Russian newspaper quoted Alexander Shaprinsky, development director of the Pragmatika dealership network, noting that starting June 9 the car went on sale in Saint Petersburg showrooms, where more than 15 units were sold, with the Comfort configuration accounting for more than half. Most buyers were private individuals, though corporate clients were also seen. [Citation: Russian Newspaper]
Chinese Lada
On June 14, the Lada X-Cross 5, planned for future rollout in showrooms, was unveiled at SPIEF. The new X-Cross was developed in partnership with Chinese FAW and is based on the Bestune T77, produced in China since 2018 and sold under the original FAW brand in Russia since 2021. AvtoVAZ has emphasized that the vehicle would be largely localized. Reporters noted that the Chinese concern’s logo remained on the steering wheel during the presentation. Azat Timerhanov, head of the Avtostat press service, told Rossiyskaya Gazeta the price had not yet been fixed and could fall between 2 million and 2.5 million rubles. The car, produced at the former Nissan plant in Saint Petersburg, is expected to reach a production target of 10,000 units by year-end. It will be sold in Russia with front-wheel drive, a 1.5-liter turbocharged engine, and a seven-speed automated transmission, with the exact power output not disclosed, while FAW publicly claimed 160 hp.