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==History== ===Establishment=== The VAZ plant was established in 1966 by the Soviet government in cooperation with the Italian car manufacturer [[Fiat]]. Viktor Nikolaevich Polyakov (later [[Minister of Automobile Industry]]) was named as director, and Vladimir Solovyov as chief designer.<ref>{{cite book |last=Thompson |first=Andy |title=Cars of the Soviet Union |publisher=Haynes Publishing |location=Somerset, UK |date=2008 |page=104}}</ref> The plant intended to produce popular [[economy car]]s that would meet the growing demand for personal transport.<ref name="fundinguniverse.com">{{cite web|url=http://www.fundinguniverse.com/company-histories/avtovaz-joint-stock-company-history/ |title=AVTOVAZ Joint Stock Company History |url-status = live|archive-url=https://web.archive.org/web/20151124075543/http://www.fundinguniverse.com/company-histories/avtovaz-joint-stock-company-history/ |archive-date=2015-11-24 }}</ref> It was built on the banks of the [[Volga]] in 1966. A [[new town]], [[Tolyatti]], named after [[Italian Communist Party]] leader [[Palmiro Togliatti]], was built around the plant.<ref name="fundinguniverse.com"/> The cost of the VAZ plant was estimated at $800 million in 1970<ref name="salpukas">{{cite news|last=Salpukas|first=Agis|title=Fiat's Soviet Unit to Profit 'little'|url=https://www.nytimes.com/1970/10/13/archives/fiats-soviet-unit-to-profit-little-but-agnelli-in-detroit-cites.html|work=The New York Times|date=13 October 1970|access-date=2018-01-21}}</ref> (equivalent to ${{Inflation|US-GDP|0.8|1970|r=1}} billion in {{inflation-year|US-GDP}}).{{inflation-fn|US-GDP}} The cars to be produced (designated as "[[Zhiguli (car brand)|Zhiguli]]") was envisaged as a "people's car" like the [[Citroën 2CV]] or the [[Volkswagen Beetle|VW Type 1]]. Production was intended to be 220,000 units a year, beginning in 1971<ref name="Thompson, p.106"/> (other sources listed 300,000 in 1971<ref name=salpukas/>); car production actually began before the plant was finished in 1970.<ref name="Thompson, p.106">{{harvp|Thompson|2008|p=106}}</ref> The VAZ trademark, at first, was a silver Volga boat on a red pentagonal background, with "Togliatti" superimposed in [[Cyrillic script|Cyrillic]] (Тольятти); the first badges, manufactured in [[Turin]], mistakenly had the Cyrillic "Я" rendered "R", instead (Тольʀтти), making them collector's items.<ref>Thompson, pp.107 & 109.</ref> The company was not as [[Vertical integration|vertically integrated]] as other Soviet enterprises; for example, it purchased components from a variety of suppliers over which it exerted little control;<ref name="underbus"/> in the early years of the company certain parts and subassemblies were imported from Fiat's suppliers in Italy until they could be locally sourced. ===1970s=== [[File:RIAN archive 878967 AvtoVAZ- Volga automaking plant in Togliatti, the Samara Region.jpg|thumb|left|The VAZ automaking plant in 1969]] The first car, the [[VAZ-2101]] (a slightly modified and rebadged [[Fiat 124]]), was produced on 22 April 1970, the 100th anniversary of Lenin's birth.<ref name="cahiers">{{cite book |last=Nettleton |first=Nordica |title=Driviviétique et États indépendants |trans-title=Drivietics and Independent States |pages=131–151 |language=fr |date=1 June 2006}}</ref> About 22,000 VAZ-2101s were built in 1970, with capacity at the end of 1973 reaching 660,000 a year; 21 December, the one-millionth 2101 was built.<ref name="Thompson, p.106"/> A third production line was added in October 1974, boosting output to 2,230 cars a day.<ref name="Thompson, p.106"/> The same year, total VAZ production reached 1.5 million.<ref name="Thompson, p.106"/> [[File:Brno, Řečkovice, depozitář TMB, tři Lady.jpg|thumb|Early VAZ models (left to right): [[VAZ-2101]] (1970), [[VAZ-2102]] (1971) and [[VAZ-2103]] (1972)]] The VAZ plant trialled many of the new automation systems that Fiat was planning to introduce in its own factories, and was described as "ultra-modern" by the ''[[Chicago Tribune]]'' in a 1973 article.<ref name="chit73">{{cite news|title=Togliatti: Russia's answer to Detroit|url=http://archives.chicagotribune.com/1973/06/03/page/618/article/togliatti-russias-answer-to-detroit|access-date=5 July 2017|newspaper=Chicago Tribune|date=June 3, 1973}}</ref> Production reached 750,000 cars a year in 1975, making the Tolyatti plant the third-most productive in the world.<ref name="glazunov72">{{cite book|last1=Glazunov|first1=Mikhail|title=Business in Post-Communist Russia: Privatisation and the Limits of Transformation|date=2013|publisher=Routledge|isbn=9781135021504|page=72|url=https://books.google.com/books?id=X9xJAgAAQBAJ&pg=PA72|language=en}}</ref> Between 1977 and 1981, AvtoVAZ acquired 30 [[welding robot]]s from Japanese firms.<ref>{{cite news|title=Inside Report (6) |url=https://www.csmonitor.com/1982/0108/010805.html |access-date=5 July 2017 |work=Christian Science Monitor |date=8 January 1982 |url-status = live|archive-url=https://web.archive.org/web/20150929075037/http://www.csmonitor.com/1982/0108/010805.html |archive-date=29 September 2015 }}</ref> In 1974, VAZ was given permission to begin producing [[Wankel engine]]s under licence from [[NSU Motorenwerke|NSU]].<ref name="Thompson, p.209">Thompson, p.209.</ref> Work began in 1976, with a single-rotor Lada appearing in 1978; the first 250 of these went on sale in the summer of 1980.<ref name="Thompson, p.209"/> After having built a number of prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their own design, the [[Lada Niva|VAZ-2121 Niva]], in 1977. This highly popular and innovative<ref name="Thompson, p.238">Thompson, p.238.</ref> [[sport utility vehicle]] (SUV) was made with off-road use in mind, featuring a gearbox with a [[locking differential|central differential lock]] lever, as well as a low- and high-range selector lever. The [[VAZ-2105]], based on the Fiat 124 mechanicals, but modernised and restyled, was introduced in 1979 and marketed outside the Soviet Union under the Riva or Laika trade names, depending on the country. Square headlights and new body panels distinguish this car from the earlier models. The 2105 was third-best selling [[automobile platform]] after the [[Volkswagen Beetle]] and the [[Ford Model T]],<ref name="kowalke1997">{{cite book|last=Kowalke|first=Ron|title=Standard Catalog of American Cars 1946–1975|year=1997|publisher=Krause publications|isbn=0-87341-521-3|url-access=registration|url=https://archive.org/details/standardcatalogo00beve}}</ref><ref name="Chapman2005">{{cite book|author=Giles Chapman |title=Car emblems: the ultimate guide to automotive logos worldwide |url=https://books.google.com/books?id=45ofAQAAIAAJ |access-date=2 October 2013 |date=1 September 2005 |publisher=Merrell |isbn=978-1-85894-317-6 |page=154 |quote=Combined with the Fiat 1 24, it's the third-best selling single model design of all time, after the Volkswagen Beetle and Ford Model T. |url-status = live|archive-url=https://web.archive.org/web/20131012210425/http://books.google.com/books?id=45ofAQAAIAAJ |archive-date=12 October 2013 }}</ref> and one of the longest production run platforms alongside the Volkswagen Beetle, the [[Hindustan Ambassador]], and the [[Volkswagen Type 2]].<ref>{{cite web|title=The Oldest Cars Still In Production |url=http://jalopnik.com/5903819/whos-left-in-the-old-folks-home-now-that-the-lada-rivas-gone |publisher=Jalopnik |access-date=31 December 2013 |date=14 May 2012 |url-status = live|archive-url=https://web.archive.org/web/20140101070835/http://jalopnik.com/5903819/whos-left-in-the-old-folks-home-now-that-the-lada-rivas-gone |archive-date=1 January 2014 }}</ref> In 1993, TTS, signed a contract with AvtoVAZ. In 1995, the first full—fledged LADA car center was opened in the city of Naberezhnye Chelny and started direct deliveries from the automobile plant. In 1995, an office was opened in Kazan. Until 1997, cars were driven from Naberezhnye Chelny. After that, they were transported by rail. ===1980s=== [[File:Technical Center AVTOVAZ. Photo 2.JPG|thumb|Technical and design center]] In May 1980, a series of mass strikes at the Togliatti plant involving hundreds of thousands of workers was reported by the western press.<ref>{{cite news|last1=Kose|first1=Kevin|title=Massive Walkouts Reported at 2 Main Soviet Auto Plants|url=https://www.washingtonpost.com/archive/politics/1980/06/14/massive-walkouts-reported-at-2-main-soviet-auto-plants/83440c3d-6abc-4f61-bc22-60cd9ca2ad98/|access-date=5 July 2017|newspaper=The Washington Post|date=14 June 1980}}</ref> Based on the success of the Niva, the design department prepared a new family of [[front-wheel drive]] models by 1984, which was of a completely domestic design. Production started with the VAZ-2108 ''Sputnik'' three-door hatchback, the series was commercially known as [[Lada Samara|Samara]]. It was the first front-wheel drive serial car built in the Soviet Union after the LuAZ- 969V.<ref>Thompson, p.251</ref> A white 2108 became the nine-millionth Lada built, on 24 May 1985, with the ten-millionth, on 9 October 1986, also a 2108.<ref>Thompson, p.253.</ref> The twelve-millionth, a right-hand drive 2109, was produced 6 July 1989.<ref>Thompson, p.255.</ref> By the late 1980s, AvtoVAZ was suffering from the deterioration of its [[capital goods]], such as tools and machinery, resulting from insufficient levels of investment over a long period.<ref name="glazunov72" /> Unproductive and antiquated management techniques also contributed to the decline, as did the absence of market competition.<ref name="glazunov72" /> The first privately owned AvtoVAZ dealership was established by [[Boris Berezovsky (businessman)|Boris Berezovsky]] in 1989.<ref>{{cite web|title=Boris Berezovsky |url=https://www.britannica.com/biography/Boris-Berezovsky#ref1048626 |website=Encyclopedia Britannica |access-date=25 April 2017 |language=en |url-status = live|archive-url=https://web.archive.org/web/20170426160835/https://www.britannica.com/biography/Boris-Berezovsky |archive-date=26 April 2017 }}</ref> Dealerships quickly turned into criminal rackets that at times simply stole cars from the factory.<ref>{{cite news|title=Godfather of the Kremlin? |url=https://www.forbes.com/forbes/1996/1230/5815090a.html |access-date=25 April 2017 |work=Forbes |date=30 December 1996 |language=en |url-status = live|archive-url=https://web.archive.org/web/20170419040937/https://www.forbes.com/forbes/1996/1230/5815090a.html |archive-date=19 April 2017 }}</ref> ===After privatization=== [[File:GM-AVTOVAZ.JPG|thumb|left|[[GM-AvtoVAZ]] plant in [[Tolyatti]], Russia]] In June 1991, [[Bear Stearns]] was hired by the Soviet government to conduct an appraisal of AvtoVAZ and negotiate a venture with a Western partner, in preparation for the privatization of the company.<ref>{{cite news|title=A Light At End Of The Turmoil|url=https://www.chicagotribune.com/1991/09/22/a-light-at-end-of-the-turmoil/|access-date=5 July 2017|newspaper=Chicago Tribune|language=en}}</ref> An independent trade union was started during the same year, as workers deemed the traditional trade union to be too close to the interests of management.<ref name="uchi">{{cite news|last1=Uchitelle |first1=Louis |title=Russia's Motor City – A special report.; Russian Auto Maker Follows A Survival Blueprint: Exports |url=https://www.nytimes.com/1992/07/23/world/russia-s-motor-city-special-report-russian-auto-maker-follows-survival-blueprint.html?pagewanted=all |access-date=5 July 2017 |work=The New York Times |date=23 July 1992 |url-status = live|archive-url=https://web.archive.org/web/20090929081510/http://www.nytimes.com/1992/07/23/world/russia-s-motor-city-special-report-russian-auto-maker-follows-survival-blueprint.html?pagewanted=all |archive-date=29 September 2009 }}</ref> In January 1993, AvtoVAZ was re-established as a joint-stock company under Russian law.<ref name="historyvaz">{{cite web|title=Волжский автомобильный завод |url=http://nashi-avto.ru/ru/vaz/s/%D0%B8%D1%81%D1%82%D0%BE%D1%80%D0%B8%D1%8F_%D0%B2%D0%B0%D0%B7.html |publisher=Nashi Avto |access-date=25 April 2017 |url-status = live|archive-url=https://web.archive.org/web/20170426151717/http://nashi-avto.ru/ru/vaz/s/%D0%B8%D1%81%D1%82%D0%BE%D1%80%D0%B8%D1%8F_%D0%B2%D0%B0%D0%B7.html |archive-date=26 April 2017 }}</ref> The company came to be controlled by the management, including [[Vladimir Kadannikov]], head of AvtoVAZ.<ref name="glazunov72"/> It was listed on the [[Moscow Exchange]].<ref name="swlearn">{{cite web|title=International Business, Update 2003 Cases General Motors and AvtoVAZ of Russia|url=http://www.swlearning.com/marketing/czinkota/int_mkt_7e/cases/General%20Motors%20and%20AtvoVAZ%20of%20Russia.doc|publisher=Swlearning|access-date=6 July 2017}}</ref> As with many other privatized post-Soviet companies, the financial situation at AvtoVAZ was dire, with workers being unpaid for months at a time.<ref name="glazunov13"/> In 1994, [[Boris Berezovsky (businessman)|Boris Berezovsky]]'s dealership company, called [[Logovaz]], accounted for nearly 10% of the domestic sales of AvtoVAZ.<ref name="klebnikov00">{{cite news|last1=Klebnikov |first1=Paul |title=The Rise Of An Oligarch |url=https://www.forbes.com/forbes/2000/0904/6606089a.html |access-date=1 July 2017 |work=Forbes |date=4 September 2000 |language=en |url-status = live|archive-url=https://web.archive.org/web/20141010142931/http://www.forbes.com/forbes/2000/0904/6606089a.html |archive-date=10 October 2014 }}</ref> Despite the state of the Russian economy at the time, demand for AvtoVAZ cars remained buoyant, but widespread corruption in the distribution network led the company to accumulate massive debts.<ref name="klebnikov00"/> The [[Lada 110|110-series]] sedan was introduced in 1995, two years after its original 1993 deadline.<ref name="uchi"/> Development costs for the car were estimated at $2 billion.<ref name="irehitt">{{cite book|last1=Ireland|first1=R. Duane|last2=Hoskisson|first2=Robert|last3=Hitt|first3=Michael|title=Understanding Business Strategy: Concepts and Cases|date=2005|publisher=Cengage Learning|isbn=032428246X|page=142|url=https://books.google.com/books?id=WmdsrKwYYNQC&pg=RA1-PA142|language=en|url-status = live|archive-url=https://web.archive.org/web/20170925121559/https://books.google.com/books?id=WmdsrKwYYNQC&pg=RA1-PA142|archive-date=2017-09-25}}</ref> The 2111 station wagon followed in 1998 and the [[Lada 112|2112 hatchback]] completed the range in 2001. By 1995, car sales, distribution, and spare parts at AvtoVAZ were all controlled by criminal organizations.<ref name="glazunov13">{{cite book|last1=Glazunov|first1=Mikhail|title=Business in Post-Communist Russia: Privatisation and the Limits of Transformation|date=2013|publisher=Routledge|isbn=9781135021504|page=81|url=https://books.google.com/books?id=X9xJAgAAQBAJ&pg=PA81|language=en}}</ref> This situation was made possible by the close relationship that existed between the criminals and part of the management.<ref name="glazunov13"/> Additionally, gangsters were used to control the workers and break strikes.<ref name="glazunov13"/> By late 1996, AvtoVAZ had become the country's largest tax debtor, owing $2.4 billion in unpaid taxes.<ref name="slowdeath">{{cite news|title=Slow Death|url=http://old.themoscowtimes.com/news/article/tmt/289213.html|access-date=1 July 2017|work=The Moscow Times}}</ref> In 1997, the [[Ministry of Internal Affairs (Russia)|Ministry of Internal Affairs]] launched Operation Cyclone,<ref name="klebnikov00"/> an investigation that ultimately uncovered evidence that gangsters connected to AvtoVAZ had carried out at least 65 murders of company managers, dealers, and business rivals.<ref name="klebnikov00"/> The [[1998 Russian financial crisis]] improved the company's market position, by improving the effectiveness of export sales and making imported cars too expensive for most Russians.<ref name="swlearn"/> The VAZ-2120 [[Lada Nadezhda|Nadezhda]], a minivan based on the Lada Niva, was introduced in 1998. In the second half of the 1990s, some efforts were made to improve the quality of production, but in 1999, nearly 50,000 cases of cars were still being assembled with missing parts.<ref name="glazunov86">{{cite book|last1=Glazunov|first1=Mikhail|title=Business in Post-Communist Russia: Privatisation and the Limits of Transformation|date=2013|publisher=Routledge|isbn=9781135021504|page=86|url=https://books.google.com/books?id=X9xJAgAAQBAJ&pg=PA86|language=en}}</ref> In 2001, [[GM-AvtoVAZ]], a joint venture with [[General Motors Corporation|General Motors]], was established.<ref>{{cite news|title=GM agrees to form joint venture with Russian company AvtoVAZ|url=http://www.deseretnews.com/article/828035/GM-agrees-to-form-joint-venture-with-Russian-company-AvtoVAZ.com|archive-url=https://web.archive.org/web/20170705212457/http://www.deseretnews.com/article/828035/GM-agrees-to-form-joint-venture-with-Russian-company-AvtoVAZ.com|url-status=dead|archive-date=July 5, 2017|access-date=5 July 2017|work=Deseret News|date=27 February 2001|language=en}}</ref> Increased competition from foreign car manufacturers had the company's share of the Russian market fall to 49% in 2002, compared to 56% four years earlier.<ref name="glazunov86"/> In 2003, VAZ presented the [[concept car]] [[Lada Revolution]], an open single-seater [[sports car]] powered by a 1.6-L engine producing {{Convert|215|hp|kW|0|abbr=on}}. Production of the [[Wankel engine]] used on some Lada models (mostly the police versions) stopped in 2004.<ref>Thompson, p.237.</ref> The introduction of the new [[Lada Kalina|Kalina]] [[B-segment]] lineup to the market occurred in 2005. AutoVAZ built a new modern plant for this model and was hoping to sell some 200,000 cars annually. The Kalina had been originally designed in the early 1990s, and its launch was repeatedly delayed, exemplifying the company's difficulty in bringing products to market in time.<ref name="glazunov86"/> In October 2005, control of the company, which had until then been exercised by subsidiaries of AvtoVAZ connected to Kadannikov, was transferred to [[Rosoboronexport]].<ref name="glazunov86" /><ref>{{cite news|last1=Buckley|first1=Neil|title=Russian state expands drive to reimpose control over strategic sectors|url=http://www.ft.com/cms/s/0/059cf022-5c90-11da-af92-0000779e2340.html?ft_site=falcon&desktop=true|access-date=1 July 2017|work=Financial Times|date=24 November 2005}}</ref> March 2007 had the start of production of [[Lada Priora]], a restyled and modernised 110-series model.<ref>{{cite web|title=Lada Priora with robotized transmission will appear in the mid-2014 |url=http://eng.autostat.ru/news/view/8809/ |website=eng.autostat.ru |access-date=2015-09-14 |url-status = live|archive-url=https://web.archive.org/web/20151222083313/http://eng.autostat.ru/news/view/8809/ |archive-date=2015-12-22 }}</ref> In 2005 it was estimated in a documentary created by [[Channel One Russia]] that about 500 people were killed between 1990 and 2005 during conflicts between police and criminals related to AvtoVAZ. The Documentary was released same year when Rosoboronexport took over AvtoVAZ with the support of 300 police officers during the extraordinary general meeting. Though Rosoboronexport was not listed as company shareholder at the time, no objections were raised by other parties, such as official shareholders. Rosoboronexport action was supported by [[Vladimir Putin]] publicly.<ref>{{Cite web |last=Ostrovsky |first=Arkady |date=2006-07-06 |title=Gunsmoke clears at Kremlin's carmaker |url=https://www.ft.com/content/2e3d3b94-0d0d-11db-84fd-0000779e2340 |access-date=2025-03-17 |website=www.ft.com |language=en-GB}}</ref> ===Involvement of Renault-Nissan=== [[File:Lada Granta1.jpg|thumb|The first [[Lada Granta]] on the Tolyatti assembly line, 2011]] In March 2008, [[Renault]] purchased a 25% stake in AvtoVAZ in a [[United States dollar|US$]]1 billion deal, with [[Rostec]] retaining most of the remaining 75%.<ref>{{cite news|last=Madslien |first=Jorn |url=http://news.bbc.co.uk/1/hi/business/7259450.stm |title=Lada deal highlights Russia's auto boom |work=BBC News |date=2008-03-02 |access-date=2014-07-07 |url-status = live|archive-url=https://web.archive.org/web/20080305182503/http://news.bbc.co.uk/1/hi/business/7259450.stm |archive-date=2008-03-05 }}</ref> The deal was agreed at a time when the Russian car market was booming.<ref>{{cite news|title=Renault buys stake in Lada owner |url=http://news.bbc.co.uk/2/hi/business/7135125.stm |access-date=5 July 2017 |work=BBC News |url-status = live|archive-url=https://web.archive.org/web/20160406001437/http://news.bbc.co.uk/2/hi/business/7135125.stm |archive-date=6 April 2016 }}</ref> The onset of the [[Great Recession in Russia|Great Recession]] caused considerable problems to the company.<ref name="aervitz">{{cite web|url=http://www.russiaprofile.org/page.php?pageid=Business&articleid=a1239208811 |title=AvtoVAZ: a New Beginning or a Dead End? |last=Aervitz |first=Irina |date=2009-04-08 |publisher=Russia Profile |access-date=2009-06-13 |archive-url=https://web.archive.org/web/20090511020040/http://www.russiaprofile.org/page.php?pageid=Business&articleid=a1239208811 |archive-date=11 May 2009 |url-status = dead}}</ref> By April 2009, AvtoVAZ was on the verge of bankruptcy, which was only avoided because of a $600 million bailout from the Russian government.<ref>{{cite news|title=Lada carmaker to cut 27,600 jobs |url=http://news.bbc.co.uk/2/hi/business/8272328.stm |access-date=5 July 2017 |work=news.bbc.co.uk |publisher=BBC News |url-status = live|archive-url=https://web.archive.org/web/20160308035840/http://news.bbc.co.uk/2/hi/business/8272328.stm |archive-date=8 March 2016 }}</ref> As an anticrisis measure, the Russian government introduced a [[car scrappage scheme]] in March 2010.<ref name="rbth_carsector">{{cite news|url=http://rbth.ru/articles/2010/06/05/car_sector_stalls_foreigners_still_investing.html|title=Russia's car sector stalls, but foreigners still investing|newspaper=Russia Beyond the Headlines|date=5 June 2010|access-date=14 December 2015|archive-date=24 October 2011|archive-url=https://web.archive.org/web/20111024113502/http://rbth.ru/articles/2010/06/05/car_sector_stalls_foreigners_still_investing.html|url-status=dead}}</ref> Avtovaz sales doubled in the second quarter of 2010 as a result, and the company returned to profit.<ref name="bbc_avtovaz_scrappage">{{cite news|url=https://www.bbc.co.uk/news/10611477 |title=Avtovaz in profit thanks to Russia car scrappage scheme |work=BBC News |date=12 June 2010 |url-status = live|archive-url=https://web.archive.org/web/20110629095711/http://www.bbc.co.uk/news/10611477 |archive-date=29 June 2011 }}</ref><ref name="bbc_scrappage">{{cite news|url=http://news.bbc.co.uk/2/hi/business/8551332.stm |title=What will save the Russian car industry? |work=BBC News |date=7 March 2010 |first=Konstantin |last=Rozhnov |url-status = live|archive-url=https://web.archive.org/web/20100311032826/http://news.bbc.co.uk/2/hi/business/8551332.stm |archive-date=11 March 2010 }}</ref> By the end of 2010, automotive production in Russia had returned to precrisis levels.<ref name="ruvr_2010">{{cite news |url=http://english.ruvr.ru/2010/12/13/36755019.html |title=Car production reaches pre-crisis level |publisher=Voice of Russia |date=13 December 2010 |url-status = dead|archive-url=https://web.archive.org/web/20120401192024/http://english.ruvr.ru/2010/12/13/36755019.html |archive-date=1 April 2012 |access-date=13 December 2015 }}</ref><ref name="premier_2010">{{cite web|url=http://premier.gov.ru/eng/premier/press/ru/5287/ |title=Prime Minister Vladimir Putin is confident that the automotive industry in Russia's Far East has a future |publisher=Premier.gov.ru |date=7 December 2010 |url-status = live|archive-url=https://web.archive.org/web/20111006010719/http://premier.gov.ru/eng/premier/press/ru/5287/ |archive-date=6 October 2011 }}</ref> In 2011, production of the classic Fiat 124-based 2105 and 2107 series models was completely moved from the Togliatti plant to the [[IzhAvto]] plant near [[Izhevsk]],<ref>{{cite web|url=http://eng.autostat.ru/news/view/5081/ |title=The cheapest Russian car was removed from production |publisher=Autostat |access-date=2011-02-14 |url-status = live|archive-url=https://web.archive.org/web/20140101061142/http://eng.autostat.ru/news/view/5081/ |archive-date=2014-01-01 }}</ref> to make space for the company's forthcoming 2016 model. In April 2012, AvtoVAZ confirmed the end of the model 2107 ([[Lada Riva]] or [[Lada Nova]]), after more than 40 years.<ref name="telegraph">{{cite news|last=Knapman |first=Chris |title=Lada 2107 production ceases after more than 40 years Production of the Lada 2107, better known in the UK as the Lada Riva, will end next week after more than 40 years. |url=https://www.telegraph.co.uk/motoring/news/9211092/Lada-2107-production-ceases-after-more-than-40-years.html |access-date=25 April 2012 |newspaper=telegraph.co.uk |date=18 Apr 2012 |quote=Lada continues to produce models including the Kalina, Priora and Granta. |url-status = live|archive-url=https://web.archive.org/web/20120424210511/http://www.telegraph.co.uk/motoring/news/9211092/Lada-2107-production-ceases-after-more-than-40-years.html |archive-date=24 April 2012 }}</ref> Sales of the [[Lada Granta]], a [[subcompact car]] developed in collaboration with Renault, started in December 2011.<ref>{{cite web|title=AvtoVAZ began sales of sedan Lada Granta with "robot" |url=http://eng.autostat.ru/news/view/10528/ |url-status = live|archive-url=https://web.archive.org/web/20151124011830/http://eng.autostat.ru/news/view/10528/ |archive-date=2015-11-24 }}</ref> The [[Lada Largus]] was launched in the Russian market in the middle of July 2012.<ref name="ladlarg"/> In August 2012, the [[Lada XRAY]] concept car was launched at the Moscow International Automobile Salon. The XRAY was designed by chief designer [[Steve Mattin]], formerly of [[Volvo]] and [[Mercedes-Benz]].<ref>{{cite news|url=https://www.bbc.co.uk/news/world-europe-19678149 |title=Goodbye Lada Classic – hello XRAY |work=bbc.co.uk |date=2012-09-22 |access-date=2014-07-07 |url-status = live|archive-url=https://web.archive.org/web/20121122131204/http://www.bbc.co.uk/news/world-europe-19678149 |archive-date=2012-11-22 }}</ref> The second generation of the Lada Kalina, basically a facelifted first generation, was also revealed at the 2012 Moscow International Motor Show.<ref>{{cite web|title=Autonews |url=http://auto.vesti.ru/news/show/news_id/354652/ |url-status = live|archive-url=https://web.archive.org/web/20151222102048/http://auto.vesti.ru/news/show/news_id/354652/ |archive-date=2015-12-22 }}</ref> The Kalina was also produced with a more powerful version named Lada Kalina Sport.<ref>{{cite web|title=New Lada Kalina Sport will receive two engines |url=http://eng.autostat.ru/news/view/8766/ |website=eng.autostat.ru |access-date=2015-09-14 |url-status = live|archive-url=https://web.archive.org/web/20151222101210/http://eng.autostat.ru/news/view/8766/ |archive-date=2015-12-22 }}</ref> On 3 May 2012, the [[Renault-Nissan]] alliance signed a letter of intent to raise its stake in Avtovaz to 51.01%.<ref name="NYT_2012-05-04">{{cite news|url=https://www.nytimes.com/2012/05/04/business/global/renault-nissan-to-take-control-of-avtovaz.html |title=Renault-Nissan to Take Control of AvtoVAZ |journal=New York Times (Print) |agency=Reuters |date=3 May 2012 |publisher=[[New York Times Company|NYTC]] |location=[[New York, NY|New York]] |issn=0362-4331 |access-date=27 July 2012 |url-status = live|archive-url=https://web.archive.org/web/20120507162452/http://www.nytimes.com/2012/05/04/business/global/renault-nissan-to-take-control-of-avtovaz.html |archive-date=7 May 2012 }}</ref> On 12 December 2012, the Renault–Nissan Alliance formed a joint venture with Roste (Alliance Rostec Auto BV) with the aim of becoming the long-term controlling shareholder of AvtoVAZ.<ref name="alliance-renault-nissan1">{{cite press release |url=http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-and-russian-technologies-create-joint-venture-to-finalize-strategic-partnership-with-avtovaz/ |title=Renault-Nissan and Russian Technologies Create Joint Venture to Finalize Strategic Partnership with Avtovaz |publisher=Renault-Nissan Alliance |date=12 December 2012 |access-date=27 January 2014 |url-status = dead|archive-url=https://web.archive.org/web/20131023103908/http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-and-russian-technologies-create-joint-venture-to-finalize-strategic-partnership-with-avtovaz/ |archive-date=23 October 2013 }}</ref> In the same year, it was announced that Avtovaz and [[Sollers JSC|Sollers]] planned to jointly produce vehicles in Kazakhstan.{{Citation needed|date=December 2020}} The plant was set to open in 2016 and built in [[Ust-Kamenogorsk]], in the eastern part of the country, to produce around 120,000 cars a year.<ref>{{cite web|url=http://tengrinews.kz/kazakhstan_news/120-tyisyach-kazahstanskih-avto-v-god-budut-proizvodit-v-ust-kamenogorske-245229/ |title=120 тысяч казахстанских авто в год будут производить в Усть-Каменогорске |work=Tengrinews.kz |date=11 November 2013 |access-date=15 July 2015 |url-status = live|archive-url=https://web.archive.org/web/20141011162605/http://tengrinews.kz/kazakhstan_news/120-tyisyach-kazahstanskih-avto-v-god-budut-proizvodit-v-ust-kamenogorske-245229/ |archive-date=11 October 2014 }}</ref> ===Later developments=== [[File:A visit to "AvtoVAZ" - January 22, 2016.png|thumb|AvtoVAZ plant in January 2016]] In November 2013, [[Bo Andersson (businessman)|Bo Andersson]] joined AvtoVAZ as CEO,<ref>{{cite web |url=http://europe.autonews.com/article/20131105/ANE/311059979/avtovaz-appoints-ex-gm-executive-andersson-as-first-non-russian-chief#axzz2jsv4kXl2 |title=AvtoVAZ appoints ex-GM executive Andersson as first non-Russian chief |work=europe.autonews.com |publisher=[[Automotive News|Automotive News Europe]] |date=November 5, 2013 |access-date=November 6, 2013}}</ref> the first non-Russian to head the company.<ref>{{cite news|title=AvtoVAZ chief Andersson in struggle with Soviet-era suppliers|url=http://www.autonews.com/article/20150623/COPY01/306239962/avtovaz-chief-andersson-in-struggle-with-soviet-era-suppliers|access-date=8 July 2017|work=Automotive News}}</ref> He became involved in conflicts with local suppliers, which he accused of supplying low-quality products.<ref name="afwnf">{{cite news|title=A Foreigner With No Friends: Bo Andersson Pushed From Russia's AvtoVAZ|url=https://themoscowtimes.com/articles/a-foreigner-with-no-friends-bo-andersson-pushed-from-russias-avtovaz-52120|access-date=8 July 2017|language=en|url-status = live|archive-url=https://web.archive.org/web/20160729213208/https://themoscowtimes.com/articles/a-foreigner-with-no-friends-bo-andersson-pushed-from-russias-avtovaz-52120|archive-date=29 July 2016}}</ref> The takeover of AvtoVAZ was completed in June 2014, and the two companies of the Renault-Nissan Alliance took a combined 67.1% stake of Alliance Rostec, which in turn acquired 74.5% of AvtoVAZ, thereby giving Renault and Nissan indirect control over the Russian manufacturer.<ref>{{cite web |url=http://europe.autonews.com/article/20140627/ANE/140629884/renault-nissan-completes-deal-to-take-control-of-avtovaz |title=Renault-Nissan completes deal to take control of AvtoVAZ |publisher=Automotive News Europe |date=27 June 2014 |access-date=1 July 2014}}</ref> [[File:Employees of AvtoVAZ, 2004-2014.png|thumb|left|Employees of AvtoVAZ, 2004–14]] In 2014, AvtoVAZ sold 448,114 vehicles, down 16.3% comparing to the previous year, due to the overall market slowdown in Russia.<ref>{{cite web |author=epp |url=http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-alliance-sales-rise-for-fifth-straight-year-in-2014-to-8-5-million-vehicles/ |title=Renault-Nissan Alliance Sales Rise For Fifth Straight Year In 2014 To 8.5 Million Vehicles |publisher=Media Room Alliance Renault-Nissan |date=2015-02-04 |access-date=2017-06-25 |url-status = dead|archive-url=https://web.archive.org/web/20161004204648/http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-alliance-sales-rise-for-fifth-straight-year-in-2014-to-8-5-million-vehicles/ |archive-date=October 4, 2016 }}</ref> The total production capacity of the Togliatti factory is 910,000 vehicles.<ref>{{cite web|url=http://europe.autonews.com/article/20150615/ANE/150619969/most-russian-car-plants-are-uncompetitive-avtovaz-ceo-says |title=Most Russian car plants are uncompetitive, AvtoVAZ CEO says |publisher=Europe.autonews.com |date=2015-06-15 |access-date=2017-06-25}}</ref> By 2014, the company's liabilities exceeded assets by 68 billion rubles, for UK-based [[Ernst & Young]] to express "significant doubt" about the company's "ability to continue as a going concern".<ref>{{cite news|title=Russia needs to send out the right message on Avtovaz's problems|url=https://www.ft.com/content/e5f26758-ed38-11e5-bb79-2303682345c8|access-date=19 August 2017|work=Financial Times|url-status = live|archive-url=https://web.archive.org/web/20170819190549/https://www.ft.com/content/e5f26758-ed38-11e5-bb79-2303682345c8|archive-date=19 August 2017}}</ref> In 2014, the Largus got a new modification, the Lada Largus Cross.<ref name="ladlarg">{{cite web|title=Lada Largus Cross will be produced in two versions|url=http://eng.autostat.ru/news/view/9672/www.autostat.ru/www.autostat.ru/www.autostat.ru/www.autostat.ru/ |website=eng.autostat.ru|access-date=2015-09-14|url-status = live|archive-url=https://web.archive.org/web/20151222093330/http://eng.autostat.ru/news/view/9672/www.autostat.ru/www.autostat.ru/www.autostat.ru/www.autostat.ru/ |archive-date=2015-12-22 }}</ref> In the fall of 2014 AvtoVAZ began production of a new Kalina model, the Lada Kalina Cross.<ref>{{cite web|title=AVTOVAZ to introduce Lada Kalina and Lada Largus preudocrossovers in Autumn |url=http://eng.autostat.ru/news/view/9537/ |website=eng.autostat.ru |access-date=2015-09-14 |url-status = live|archive-url=https://web.archive.org/web/20151222100331/http://eng.autostat.ru/news/view/9537/ |archive-date=2015-12-22 }}</ref> Production of the [[Lada Vesta]], based on a new b\C platform developed by AvtoVAZ in cooperation with Renault-Nissan Alliance, started on September 25, 2015, at [[Lada Izhevsk]] manufacturing site. For the first time in Lada history, only a year had passed between concept car and start of production.<ref>{{cite web|url=https://globalvoices.org/2016/02/12/its-halftime-in-russia/ |title=It's Halftime in Russia · Global Voices |website=Global Voices |date=12 February 2016 |access-date=2016-03-02 |url-status = live|archive-url=https://web.archive.org/web/20160226073650/https://globalvoices.org/2016/02/12/its-halftime-in-russia/ |archive-date=2016-02-26 }}</ref> [[Lada XRAY]] was the first compact city crossover in company's history. Starts of sales was held on February 14, 2016.<ref>{{cite web|url=http://eng.autostat.ru/news/view/11817/ |title=15 figures about LADA XRAY |website=eng.autostat.ru |access-date=2016-03-02 |url-status = live|archive-url=https://web.archive.org/web/20160308012724/http://eng.autostat.ru/news/view/11817/ |archive-date=2016-03-08 }}</ref> Total Lada sales in 2015 amounted to 269,096 cars, of which 207,389 were built by AvtoVAZ in Tolyatti, while the rest were made by Lada Izhevsk, giving the company a 17.9% share of the Russian automotive market.<ref name="report15"/> In March 2016, [[Nicolas Maure]] became the company's CEO.<ref>{{cite web |url=http://europe.autonews.com/article/20160316/ANE/160319917/avtovazs-new-boss-faces-a-tough-job-at-russian-carmaker |title=AvtoVAZ's new boss faces a tough job at Russian carmaker |work=europe.autonews.com |publisher=[[Automotive News|Automotive News Europe]] |date=March 16, 2016 |access-date=March 22, 2016}}</ref> In April 2016, [[Carlos Ghosn]], Renault-Nissan Chairman, ceded his AvtoVAZ chairmanship position to Sergey Skvortsov, Deputy General Director of Rostec, the minority shareholder in Avtovaz.<ref name=ANE>{{cite news |url=http://www.autonews.com/article/20160418/COPY01/304189906/ghosn-will-give-up-avtovaz-chairmanship-amid-restructuring |title=Ghosn will give up AvtoVAZ chairmanship amid restructuring |author= Laurence Frost and Gilles Guillaume |newspaper=[[Automotive News|Automtive News Europe]] |date=18 June 2016 }}</ref><ref name=Reuters>{{cite news|url=https://www.reuters.com/article/renault-avtovaz-idUSL5N17L2HS |title=Renault's Ghosn cedes Avtovaz chairmanship to Rostec exec |work=Reuters |date=18 June 2016 |url-status = live|archive-url=https://web.archive.org/web/20160817170221/https://www.reuters.com/article/renault-avtovaz-idUSL5N17L2HS |archive-date=17 August 2016 }}</ref> Despite massive layoffs since 2008, in 2016, the company remained unprofitable.<ref>{{cite news|title=Objectif profits en 2018 pour Avtovaz (Renault-Nissan)|url=https://lexpansion.lexpress.fr/actualites/1/actualite-economique/avtovaz-renault-nissan-renouera-avec-le-benefice-d-ici-2018_1824081.html|access-date=30 November 2017|work=LExpansion.com|date=24 August 2016|language=fr}}</ref> ===Groupe Renault takeover=== In October 2016, Renault invested $1.33 billion in another recapitalization of AvtoVAZ, this time without involvement from Nissan, making the company a subsidiary of the French group.<ref>{{cite news|title=Renault's Lada bailout raises bet on Russia |url=https://www.reuters.com/article/us-renault-avtovaz-idUSKCN12A1PP |access-date=6 July 2017 |work=Reuters |date=2016 |url-status = live|archive-url=https://web.archive.org/web/20170220192106/http://www.reuters.com/article/us-renault-avtovaz-idUSKCN12A1PP |archive-date=20 February 2017 }}</ref> In September 2017, Nissan sold its AvtoVAZ stake to Renault for €45 million.<ref>{{cite news|title=Nissan перестал быть акционером "АвтоВАЗа"|url=https://www.vedomosti.ru/auto/articles/2017/09/19/734563-nissan-perestal-avtovaza|access-date=29 November 2017|work=Vedomosti|date=19 September 2017}}</ref> In December 2018, Renault and Rostec completed the acquisition of all AvtoVAZ shares through their Alliance Rostec venture.<ref name=fi>{{cite web|title=Renault et Rostec montent à 100% dans Avtovaz |trans-title=Renault and Rostec acquire 100% of AvtoVAZ |language=fr |url=http://www.lefigaro.fr/flash-eco/2018/12/27/97002-20181227FILWWW00045-renault-et-rostec-montent-a-100-dans-avtovaz.php |work=Le Figaro |access-date=29 December 2018 |date=27 December 2018 }}</ref> The company then delisted from the Moscow Exchange.<ref>{{cite news |title=AVTOVAZ is going for delisting |url=http://rusautonews.com/2018/09/26/avtovaz-is-going-for-delisting/ |access-date=5 June 2019 |work=RusAutoNews.Com |date=26 September 2018 |archive-date=5 June 2019 |archive-url=https://web.archive.org/web/20190605025508/http://rusautonews.com/2018/09/26/avtovaz-is-going-for-delisting/ |url-status=dead }}</ref> In 2018, AvtoVAZ posted a net profit of $90.5 million, its first positive result in a decade.<ref>{{cite news |title=Russian Automaker AvtoVaz Makes First Profit in a Decade |url=https://www.themoscowtimes.com/2019/05/02/russian-automaker-avtovaz-makes-first-profit-in-a-decade-a65466 |access-date=7 June 2019 |work=The Moscow Times |date=2 May 2019 |language=en}}</ref> In June 2019, Rostec announced it would eventually reduce its stake in AvtoVAZ to 25%.<ref>{{cite news |title=Rostec to sell Avtovaz stake to Renault for more than 10 billion... |url=https://www.reuters.com/article/us-russia-forum-avtovaz-renault/rostec-to-sell-avtovaz-stake-to-renault-for-more-than-10-billion-roubles-idUSKCN1T81X5 |access-date=12 June 2019 |work=Reuters |date=7 June 2019 |language=en}}</ref> In December 2021, Renault and Rostec transferred its shares from the Netherlands-registered Alliance Rostec to the Russia-registered Lada Auto Holding. The new holding kept the same Renault-Rostec shareholding ratio as its Dutch predecessor.<ref name=LAH>{{cite web |url=https://avtonovostidnya.ru/avtoprom/264353-renault-avtovaz |title=Ростех и Renault перевели 100% акций АВТОВАЗа в российскую юрисдикцию |trans-title=Rostec and Renault transferred all its AvtoVAZ shares to Russian jurisdiction |first=Ivan |last=Bakharev |work=Autonews Daily |language=Russian |date=30 December 2021 |accessdate=7 February 2022}}</ref> In March 2022, following the [[2022 Russian invasion of Ukraine]] and international pressure to do so,<ref>{{Cite web |date=12 March 2022 |title=Renault said to be reluctant to leave Russia over costs |url=https://europe.autonews.com/automakers/renault-said-be-reluctant-leave-russia-over-costs |access-date=2022-03-13 |website=Automotive News Europe |language=en}}</ref> Renault said it was "assessing" its AvtoVAZ ownership.<ref>{{Cite press release |title=Renault industrial activities in Russia are suspended |url=https://en.media.renaultgroup.com/news/renault-industrial-activities-in-russia-are-suspended-9c81-989c5.html |date=23 March 2022 |access-date=23 March 2022 |publisher=Renault}}</ref> In December 2019, AvtoVAZ acquired General Motors' stake in their GM-AvtoVAZ joint venture. As part of the deal, AvtoVAZ used Chevrolet branding for the [[Chevrolet Niva|Niva]] models<ref>{{cite web|title=GM pulls out of Russian JV with AvtoVAZ |last1=Stolyarov |first1=Gleb |last2=Marrow |first2=Alexander |url=https://europe.autonews.com/automakers/gm-pulls-out-russian-jv-avtovaz |work=Automotive News Europe |access-date=17 February 2020 |date=9 December 2019}}</ref> until August 2020, before replacing it with Lada.<ref>{{cite web |title=АвтоВАЗ начал продавать Chevrolet Niva в своих салонах |trans-title=AvtoVAZ starts selling Chevrolet Nivas on its dealerships |url=https://www.autonews.ru/news/5e4a61429a79470ee252e96d |work=autonews.ru |language=ru |access-date=17 February 2020}}</ref> In January 2021, following a company revamp, Renault said it would integrate Lada and sister [[Automobile Dacia|Dacia]] brands into a new business unit.<ref name=AUTO1>{{cite web |title=Welcome to the Dacia Bigster Concept |last=Harrison |first=Tom |url=https://www.topgear.com/car-news/concept/welcome-dacia-bigster-concept?amp |access-date=16 January 2021 |date=14 January 2021 |work=Top Gear}}</ref><ref name=AVTOPRESS>{{cite press release |title=AvtoVAZ strongly contributes to Groupe Renault Renaulution strategy |url=https://www.lada.ru/en/press-releases/118543.html |access-date=16 January 2021 |date=14 January 2021 |work=Top Gear |archive-date=15 January 2021 |archive-url=https://web.archive.org/web/20210115111955/https://www.lada.ru/en/press-releases/118543.html |url-status=dead }}</ref> AvtoVAZ was made part of the business unit structure.<ref name=AVTOPRESS/> In 2021, the company's revenue amounted to 301 billion rubles.<ref>{{Cite web |title=АО "Автоваз" |url=https://www.rusprofile.ru/id/1767441 |access-date=2023-12-26 |website=www.rusprofile.ru |language=ru}}</ref> ===Effects stemming from the 2022 Russian invasion of Ukraine=== On 3 March 2022 AvtoVAZ announced the suspension of the assembly of cars in Tolyatti and Izhevsk from 5 March. The company issued a press release blaming 'the ongoing crisis in the supply of electronic components.'<ref>{{cite news |url=https://tass.ru/ekonomika/13943115 |publisher=tass.ru |access-date=2022-03-05 |title="Автоваз" приостановит сборку автомобилей из-за дефицита электронных компонентов}}</ref> ===Re-nationalization=== On 16 May 2022, Renault said it had sold its controlling stake in AvtoVAZ to the [[NAMI (automotive institute)|Central Research and Development Automobile and Engine Institute]] (NAMI),<ref>{{Cite web|url=https://www.kolesa.ru/news/avtovaz-perekhodit-k-nami-moskovskiy-zavod-renault-budet-delat-moskvichi|title=АВТОВАЗ переходит к НАМИ, московский завод Renault будет делать «Москвичи» - КОЛЕСА.ру – автомобильный журнал|first=Андрей|last=Ежов|website=Автомобильный журнал «КОЛЕСА.РУ»}}</ref> a state-owned research center, for one rouble.<ref name=Newowners>{{cite news |url=https://www.wsj.com/articles/renault-sells-russia-business-to-state-backed-entity-for-one-ruble-11652692431|title=Renault Sells Russia Business to State-Backed Entity for One Ruble |newspaper=Wall Street Journal |date=16 May 2022 |last1=Kostov |first1=Nick }}</ref> The agreement has a buyback option for Renault within six years after the sale.<ref>{{cite news |url=https://www.newsendip.com/assets-of-french-carmaker-renault-in-russia-become-the-property-of-moscow/|title=Assets of French carmaker Renault in Russia become the property of Moscow |date=16 May 2022 }}</ref> In November 2022, the controlling shareholder of AvtoVAZ, NAMI, acquired Nissan's [[Saint Petersburg]] facilities (including its assembly plant) for a "symbolic price" with a six-year buyback option. In February 2023, NAMI sold 99% of them in turn to AvtoVAZ for {{euro|1}}. AvtoVAZ plans to use the plant to assemble [[C-segment|C]] and [[D-segment]] vehicle kits from other manufacturers, under the Lada badging.<ref name=NSP>{{cite web |title=АвтоВАЗ выкупил завод Nissan в Санкт-Петербурге за €1 |trans-title=AvtoVAZ acquired the Nissan plant in Saint Petersburg for {{euro|1}} |url=https://www.kommersant.ru/doc/5811637 |work=Kommersant |first=Daria |last=Erozbek |language=ru |date=7 February 2023 |access-date=1 May 2023}}</ref>
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