Renault, who has a 25 percent stake in Avtovaz, the parent company of Lada, has revealed its plans for Lada.
It’s plans for a hatchback based on the Concept C (Pictured above) have been canned to focus on improving the current range.
Renault will be trying to improve the quality of the Lada Kalina. Russian cars are known for their lack of quality, so this is a good thing to focus on. New cars will eventually be rolled out, around 2012-2014 according to Renault. There will be cars based on Renault-Nissan platforms. They want to concentrate on the Kalina first.
The Russian government is urging Renault to invest money in Avtovaz, but Renault is resisting and says their contribution is “through technology, equipment, know-how and platforms”.
Avtovaz was hit quite badly by the recession, with new cars sales in Russia down 57 percent and down 75 percent in Ukraine. Russia and Ukraine are some of Lada’s biggest markets. They were going to sack 27,000 workers to save money, but the Russian government stepped in and provided cash, some of which will go towards developing new models.