AVTOVAZ starts production of simplified original models

The latest statement from the Renault Group about the cessation of work in Russia was unexpected for many, but AVTOVAZ most likely learned about this decision much earlier and has already started taking measures to continue production. Yesterday’s message from the domestic auto giant to the media literally read:

“… active work is underway to replace some critical imported components with alternative solutions. The company is also preparing special versions of some Lada models, which will be less affected by imported components. They will gradually become available to our customers in the coming months.”

To return to production of their original Granta and Niva models, it is necessary to certify the machines with new component suppliers. But the concern may begin assembling cars in the most simplified version at the end of April, industry experts told Kommersant.

There are no new announced models linked to the Renault platform. And in general, the prospect of cooperation with the French concern looks rather vague. Recall that 68% of AvtoVAZ is owned by Renault, 32% by Rostec, 10% of all revenues of the French group come from the Russian Federation.

In Togliatti, only two models are produced on their own platforms – Granta (SKP Kalina) and Niva (SKP), and the Izhevsk plant produces Lada Vesta, made on its own platform. Largus and XRAY (line B0) are based on the Romanian Dacia. The process at AVTOVAZ is tied to foreign suppliers as the company has one purchasing system with Renault. Vesta is especially not free from this, in Niva and Granta the dependence on Renault is less. In recent years, AVTOVAZ has gradually abandoned the independent production of components, reducing the number of employees and making the company more efficient. Now we have to start the reverse process and the Ministry of Industry and Trade is ready to provide the company with all kinds of support.

Most likely, AvtoVAZ will have to simplify equipment as much as possible, release cars without ABS and leave only air conditioning as a comfort feature. If the collective West continues to “tighten the screws”, the model range will have to be reduced to three cars: Niva, Granta and Vesta in the simplest trim levels. However, there are also foreign components, their replacement requires certification, and it’s time.

Even under the simplified procedure, a return to full-time employment will last until July, experts say. In the meantime, the most important thing is to somehow start the conveyor belt so that the business remains viable.

The Ministry of Industry and Trade is determined to offer companies that have suspended work in Russia the opportunity to decide on their future plans before the beginning of April.

Source: Z R

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