AvtoVAZ, the Russian Car Maker: Facing Up the Foreign Competition



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Code : COM0058

Year :
2005

Industry : Automobiles

Region : Russia

Teaching Note:Available

Structured Assignment :Available

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The Russian Car Industry: Competition Restricted The Russian car industry has traditionally lagged far behind Western Europe, North America or Japan. Although the Russian government gave priority to aid the industry's development, inadequate capital and poor infrastructure resulted in outdated, unreliable and unsafe cars...

AvtoVAZ: The 'Protected' Jewel? AvtoVAZ, also known as VAZ, Volzhsky Automobilny Zavod (Volga Auto Factory), was set up as a state-owned company in 1966 in collaboration between Fiat of Italy and the erstwhile Soviet Union. The first 'Lada'was rolled out in 1970. The Lada was envisaged as a 'people's car ' and over the years, it became virtually the only car that the Russians could purchase...

The New Realities "Domestic carmakers have seen their market share slip away in recent years, edged out by competitively priced foreign cars cruising in at full throttle with the help of cheap consumer loans. Companies from the United States' Ford and General Motors to Korea's Daewoo and the Czech Republic's Skoda - have taken advantage of Russian consumers' disdain for domestic autos and have made significant inroads on their homegrown competition"...

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