AvtoVAZ

The Russian automotive company AVTOVAZ is the largest manufacturer of passenger cars in Russia and Eastern Europe. At the same time, the company is focused mainly on the domestic market, where it is the absolute leader in sales. The full official name is AvtoVAZ Open Joint Stock Company. The headquarters and main production is located in the city of Togliatti, Samara Region.

For 2011, it produces cars under the brand name "Lada" ("Lada"). In addition, it supplies other manufacturers with car kits for the production of cars of the VAZ, Lada and Oka brands.

Aktivs

As of August 2011, the production units of AvtoVAZ OJSC include:

• metallurgical production (MtP);
• press production (PrP);
• assembly and body production (UPC);
• Mechanical and Assembly Production (MC);
• the building of auxiliary workshops (CEC), transformed in 2000 into instrumental production (IP);
• repair and maintenance of equipment (PRiGR);
• production of plastic products (ITP);
• Pilot production
• production of molds and dies (PPSh).

As of August 2011, AvtoVAZ produces models of segments B (including MPV-B), C, SUV B/C, confidently occupying almost the entire ultra-budget price range (up to 250 thousand rubles). AvtoVAZ's product portfolio includes 9 models on 4 platforms. It was stated that by 2020 the company intends to produce 9 models on 3 (or 4) platforms in six segments. Three models - Low Cost, the new Priora and the C-class - will account for 70% of production volumes.

Performance indicators

2023: Production of 374,077 vehicles (+ 50 %)

In 2023, AvtoVAZ produced 374,077 cars, which is 50% more than a year earlier. The Russian automaker cited such data on January 11, 2024.

According to the press service of AvtoVAZ, the volume of production of Lada cars on the Togliatti site has become a record over the past 10 years. By the end of 2023, 16 models were in production, while production of 16-valve engines was resumed, and all models were switched to the Euro-5 standard. More than 1,200 parts, assemblies and materials that were previously imported from unfriendly countries were localized and replaced.

In the Russian car market, the concern in 2023 reached a share of 35%, selling 352.57 thousand cars. This is 87% higher than in 2022, the company said. Of this volume, 138.5 thousand cars are corporate sales. The brand in 2023 "became the dominant in the market," said AvtoVAZ President Maxim Sokolov. At the same time, sales in December were lower than in the previous two months, amounting to 33.05 thousand cars. Deliveries of Lada cars abroad at the end of 2023 decreased by 2.7 times, to 6.5 thousand units.

The main volume of cars sold in 2023 by AvtoVAZ is the most budget Granta (206.116 thousand) and Niva (92 thousand). The model of the middle mass segment Vesta, the production of which was started in Togliatti in the middle of the year, accounted for only 49.27 thousand cars. At the same time, brands from China are mainly sold in more expensive segments of the car market, primarily SUVs.

From the materials of AvtoVAZ it also follows that by the beginning of January 2024, the company has 568 dealerships, more than half (315) of which specialize in the Lada brand, and 253 in cars under the Renault and Nissan brands. In addition, the Russian company noted a 22 percent increase in annual sales of spare parts and accessories.^[1]

2022

Revenue reduction by 43.7% to RUB 169.57 billion

AvtoVAZ's revenue in 2022 decreased by 43.7% compared to 2021 and amounted to 169.57 billion rubles. The net profit of the Russian automaker in comparison with the same periods decreased by 86.2% and amounted to 206.6 million rubles. Such data were released on May 7, 2023.

According to TASS, citing AvtoVAZ reports, the company's gross profit in 2022 decreased by 71.2%, to almost 7.24 billion rubles. The cost of sales amounted to 162.33 billion rubles (-41.2% by 2021).

The company's commercial expenses in 2022 decreased by 37.4% compared to the indicator of one year ago (to 5.23 billion rubles), managerial - by 6.9% (to 6.13 billion rubles). The loss from sales in 2022 amounted to 4.13 billion rubles against a profit of 10.2 billion rubles a year earlier.

The total debt of the company decreased by 3.9%, to 181.75 billion rubles. Long-term liabilities decreased by 16.6%, to 87.7 billion rubles. In particular, borrowed funds decreased to 82 billion rubles (-11.5%), other long-term liabilities - to 861.4 million rubles from 6.2 billion rubles at the end of 2021. AvtoVAZ's short-term liabilities grew by 12%, exceeding 94 billion rubles. Accounts payable decreased to 45.7 billion rubles (-39.8%). At the same time, the indicator of short-term borrowed funds soared almost 36 times - to 41.6 billion rubles from 1.2 billion rubles at the end of 2021.

AvtoVAZ estimates the volume of the Russian car market in 2022 at 676 thousand cars, and its share in it is a record 27.9%. Against the background of the cessation of production and production of mass cars of other brands, almost 189 thousand Lada cars were sold on the market. The most significant contribution to their decline was made by Vesta, which has not been released since spring. The implementation of the model for the year collapsed 3.9 times (by 74.3%), to 29.2 thousand units.^[2]

Debts exceeded 100 billion rubles

AvtoVAZ's debts to banks reached 107 billion rubles. This was announced by the President of the company Maxim Sokolov at a meeting on the development of the automotive industry in the Federation Council on September 20, 2022. According to him, the total debt of the automaker since the beginning of 2022 increased by 13.8%.

Maxim Sokolov said that the company will break even in the event of an increase in production to 300 thousand - 400 thousand vehicles per year. According to the top manager, a serious demand support program from the Ministry of Industry and Trade is needed to implement such a volume, namely, the launch of a preferential car loan program. To implement a similar number of cars in 2023, the volume of the program should be at least 20 billion rubles.

The press service of AvtoVAZ clarified that the corresponding assessment includes only the amount of the company's debt to credit institutions, specifying that at the end of 2021 the figure was at the level of 94 billion rubles. Thus, its growth at the moment amounted to 13.8%, or 13 billion rubles.

When asked about the annual cost of servicing the group's debts, Sokolov answered during the meeting:

Шаблон:Quote 'It has grown now - they are all tied to the Central Bank's floating refinancing rate. This year, taking into account the fact that the rate was quite high, (the cost of servicing the debt) will be about 12 billion rubles. By the beginning of 2022, according to AvtoVAZ reports, the company's short-term liabilities decreased by 2.5% - to 83.9 billion rubles. Long-term liabilities decreased by 13.5% - to 119 billion rubles.

According to the IFRS statements of the former main shareholder of AvtoVAZ of the French group Renault, by the beginning of 2022, the short-term liabilities of the Russian automaker decreased by 2.8% - to 992 million euros, long-term liabilities increased by 8.7% - to 1.22 billion euros.^[3]

81% drop in sales in June

In June 2022, AvtoVAZ sales fell 81% compared to 2021.

Renault's share in the company 67.69% transferred to FSUE NAMI

Renault's Russian assets are becoming state ownership, the Ministry of Industry and Trade of the Russian Federation said on May 16, 2022. The share in AvtoVAZ is FSUE NAMI (67.69% of the shares), the remaining shares of the carmaker will be retained by Rostec Group of Companies, the Renault Russia plant will be owned by the Moscow Government (100% of the shares).

Maintenance of Renault cars in the Russian Federation will now be carried out by AvtoVAZ.

The deal to nationalize Renault's assets implies the possibility of a repurchase of the stake by a foreign concern over the next six years.

Plan to transfer Renault stake to NAMI with 6-year buyback option

Renault decided to transfer its 68% stake in Avtovaz to the Russian side with the possibility of its buyback within five to six years, most likely the NAMI institute will receive it, said Denis Manturov, head of the Ministry of Industry and Trade of the Russian Federation. According to him, we are not talking about nationalization, but it will be a deal "for the ruble."

He noted that Renault will transfer its stake in the Moscow enterprise to the Moscow government, other cars will be produced there.

Sales decline in March by 56% amid Russia's special operation in Ukraine

Deliveries of Lada cars produced by the Russian company Renault fell by 56% in March 2022 compared to the same month last year amid a special operation by Russia in Ukraine. This is the ninth monthly decline in a row for the brand.

In general, sales of Renault cars and commercial vehicles in Russia in March fell by 64% compared to the global drop in sales by 25%.

AvtoVAZ's business, which Renault owns a majority stake in, has made the French company the most conflict-prone automaker in Ukraine. In March, the manufacturer announced that it was suspending production at its plant in Moscow and evaluating developments.

2021

Revenue growth of 11.8%, to 3.13 billion euros

At the end of 2021, AvtoVAZ raised 3.13 billion euros, which is 11.8% more than a year earlier. The net profit of the Russian automaker amounted to 166 million euros against 196 million euros of losses a year earlier. Such data are given in the reporting of the Renault group, which owns 68% of AvtoVAZ.

AvtoVAZ's short-term liabilities at the end of 2021 amounted to 992 million euros (-2.8% by 2020), long-term - 1.22 billion euros (+ 8.7%). The company's capital expenditures for the year increased by about a third and reached 229 million euros.

According to Renault, global sales of the Lada brand in 2021 (not including the sold remnants of the Niva cars of the former joint venture with General Motors - 183 units) grew in annual terms by 0.3%, to 385,208 units, but compared to 2019 were about 7% lower.

According to the Association of European Businesses (AEB), AvtoVAZ sold 350,714 cars in the Russian market in 2021 (+ 2.1% by 2020 and -3.2% by 2019). The Lada brand remained the market leader with a 21% share (-0.5 percentage points by 2020 and + 0.4 percentage points by 2019).

The model-leader of the Russian market, according to AvtoVAZ, was Lada Vesta. The car sold 113,698 units, the market share was 6.8% (+ 0.1 pp by 2020). Lada Granta is in second place. In 2021, 111,430 such cars were sold in Russia, the market share of the model was 6.7%, having decreased by 1.2 pp compared to the previous year. This was due to the shortage of microchips faced by AvtoVAZ and other automakers, the company explained.

In 2021, 7 new Lada dealerships were opened in Russia. The AvtoVAZ dealer network remains the largest in the country and has 304 car dealerships (by the end of 2021).

In 2021, 35.8 thousand Lada cars were exported - 9.4% more compared to the previous year. As noted, shipments have grown, despite the crisis in export markets.^[4]

Increase in car sales by 2.1%, to 350,714 units.

At the end of 2021, AvtoVAZ sold 350,714 cars, which is 2.1% more than a year earlier. Such data was released on January 12, 2022 by Olivier Mornet, Executive Vice President for Sales and Marketing of the company.

The first half of 2021 was much more dynamic in terms of sales in annual terms, but the global shortage of auto components in the second half of the year significantly affected sales, which, as we previously expected, will be higher, - he said at the annual final conference of AvtoVAZ.

As Interfax notes, in comparison with 2019, when there was no COVID-19 coronavirus pandemic, sales of AvtoVAZ cars in 2021 decreased by 3.2%.

The best-selling AvtoVAZ car in 2021 was Lada Vesta, which replaced the leader of the last two years, the Granta model. However, the gap between the models is minimal: their implementation amounted to 113.7 thousand and 111.4 thousand units, respectively. The implementation of the Lada Xray model in 2021 amounted to 22,107 thousand copies (+ 14.6%). The share of the brand in the Russian car market in 2021 fell for the first time since 2014, amounting to 20.9% (a drop of 0.6 pp in comparison with 2020).

The market share of the Russian automaker in the passenger segment in the Russian Federation, according to its own estimates, in 2021 amounted to 22% against 22.3% a year earlier. Corporate sales of Lada in 2021 increased by 18%, to 107.567 thousand cars. The dealer network of the brand remains the largest in Russia, by the beginning of 2022 it has 304 salons.^[5]

By the beginning of 2022, AvtoVAZ exports its products to 17 countries. In 2021, the company sold 35.5 thousand cars abroad (+ 9.4% compared to 2020). The main sales markets are Belarus, Azerbaijan and Kazakhstan. In 2021, local assembly began in Uzbekistan, a new importer appeared in Armenia.

History

2024: Transfer of former Nissan plant to state ownership

AvtoVAZ, as Dmitry Kostromin, vice president for sales and marketing of the company, said in mid-February 2024, returned Avtozavod St. Petersburg to state ownership. Now this is an independent unit of the factory, he noted. Read more here.

2023

Approval of an investment program for 40 billion rubles

The AvtoVaz investment program in 2024 will amount to about 40 billion. rubles This is the head at the end of December 2023. Ministry of Industry and Trade Russia Denis Manturov He called the investments planned by the automaker "weighty."

As RIA Novosti reminds, Denis Manturov is also the head of the board of directors of AvtoVAZ. According to him, in the next three years, AvtoVAZ will launch production of three models: Lada Aura in 2024, Lada Iskra in 2025 and a new crossover on the Vesta platform in 2026.

Manturov said that AvtoVAZ's production plan for 2024 is planned to be increased by almost a quarter - up to 500 thousand Lada cars. In 2023, AvtoVAZ's production plan was 400 thousand cars.

On December 7, 2023, AvtoVAZ President Maxim Sokolov told reporters about the company's plans to increase car exports to 100 thousand units. per year. He added that in Russia, car imports are approaching parity with highly localized cars produced in the country, in connection with which it is necessary to take protective measures.

Earlier in 2023, Maxim Sokolov said that the transition to small assembly at the Lada St. Petersburg plant would require investments in the amount of 3-5 billion rubles. These are significant investments that will burden the financial model of the company, will require an additional increase in the credit burden, Sokolov noted.

By the end of December 2023, at the Togliatti site, AvtoVAZ produces versions of Lada Granta (production restarted in June 2022), Lada Niva Legend (from mid-July 2022) and Lada Niva Travel (from mid-August 2022). In March 2023, the serial production of Lada Vesta NG began. Pilot production has also been launched. electric vehicles e-Largus^[6]

Hiring 4,000 employees per year

In less than 12 months - from January to early December 2023 - AvtoVAZ attracted 4.1 thousand new employees to work. This was announced by the president of the company Maxim Sokolov on December 5, 2023.

According to him, having solved the problem of hiring employees to the site in Togliatti, AvtoVAZ also plans to solve the personnel issue at factories in Izhevsk and St. Petersburg.

In St. Petersburg, it is easier - there is still a larger labor market. But in Izhevsk and in the Samara region, it reached a critical point, became scarce. It happened very quickly, as they turned on, as they say, the switch. We felt it literally this year, - said the head of AvtoVAZ, whose words are quoted by Interfax.

In 2024, it is planned to recruit another 5 thousand employees to the sites in Izhevsk and the northern capital, he added.

As Sokolov emphasized, the launch of conveyor lines and the high production speed at the Togliatti site demanded "serious extraordinary measures" from the company.

Here we all "leveled" wages. Then they realized that this would not be enough for us either, - said the head of AvtoVAZ.

Within the year, the staff of AvtoVAZ JSC changes its number in the current order and by the beginning of December 2023 it is 34.3 thousand people, the company's press service said.

In September 2023, the Agency for Foreign Labor Migration of Uzbekistan announced the sending of the first batch of compatriots to the AvtoVAZ plant. Before that, they successfully passed contests for vacancies organized by employers from Russia. The recruitment took place in Tashkent and a number of regions of the country in early September.

In September 2023, AvtoVAZ reported an increase in production rates and confirmed plans to produce more than 400 thousand cars by the end of 2023.^[7]

Opening plan of the laboratory based on NRNU MEPhI

AvtoVAZ JSC NRNU MEPHI and on October 9, 2023 announced the beginning of strategic cooperation, the main direction of which will be the development automobile electronic engineers of a specialized one. ON One of the first steps in the framework of this cooperation will be the opening of a joint application laboratory based on the MEPHIUS Full-Cycle Microelectronics Design Center at NRNU MEPhI. More. here

Exit from the capital of the largest manufacturer of auto components in Russia

In mid-July 2023, it became known about the withdrawal of AvtoVAZ from the capital of the United Automobile Technologies (OAT) group. As part of the deal, KamAZ is transferring 40% of the largest manufacturer of original spare parts and components for the automotive industry in the Russian Federation. Read more here.

Renault-Nissan bank purchase

On June 21, 2023, AvtoVAZ announced the purchase of 100% of RN Bank (the Russian bank of the Renault-Nissan alliance) from BARN B.V. The deal is closed, its financial and other conditions are not disclosed. Read more here.

Immigrants from the Efko group bought an unfinished car body factory from AvtoVAZ

Immigrants from the Efko group bought an unfinished car body factory from AvtoVAZ. The corresponding record of the transaction appeared in the Unified State Register of Legal Entities (Unified State Register of Legal Entities) at the end of April 2023. Read more here.

Rostec withdrew from AvtoVAZ capital

The state corporation Rostec left the shareholders of AvtoVAZ, transferring to the Federal State Unitary Enterprise Research Automobile and Motor Institute (NAMI), which is subordinate to the Ministry of Industry and Trade, a share of 32.3% in Lada Avto Holding is a joint venture controlled by AvtoVAZ. This became known in early May 2023.

The fact that on May 5, 2023, NAMI became the sole owner of Lada Auto Holding LLC was reported by TASS with reference to the data of the Unified State Register of Legal Entities (USRUL). The press service of Rostec confirmed to the agency the fact of concluding a deal.

Yes, indeed, they left the capital, - said the state corporation.

Until the end of 2021, AvtoVAZ was controlled through the Dutch joint venture Alliance Rostec Auto B.V., co-owned by Rostec (32.3%) and the French automaker Renault (67.7%). Then the controlling joint venture was transferred to Russian jurisdiction - AvtoVAZ was owned by Lada Auto Holding LLC, in which Rostec and Renault retained their shares.

After the start of a special military operation in Ukraine and the imposition of sanctions against the Russian Federation, Renault decided to leave the Russian market, transferring its assets to the state property of the Russian Federation. In particular, the share in AvtoVAZ was transferred to FSUE NAMI with a buyback option for 6 years. The remaining 32.3% of the automaker's shares continued to be controlled by Rostec until the beginning of May 2023.

A source Sheets"," close to the Ministry of Industry and Trade, noted that AvtoVAZ's controlling stake already belongs to the state and from this point of view, nothing will conceptually change. By May 2023, sectoral sanctions apply to Rostec enterprises. In USA particular, Ministry of Finance the United States ordered to complete all transactions with Rostec itself, as well as organizations owned by it by 50% or more by August 11, 2023.^[8]

Receiving a grant for 496 million rubles for import substitution of foreign software

On April 10, 2023, it became known about the provision of AvtoVAZ a grant in the amount of 496 million rubles for the import substitution of foreign software in the system of design and technological preparation of production. The funds were allocated by the Russian Fund for the Development of Information Technologies (RFRIT).

According to Interfax, citing a statement from the fund, the agreement between RFRIT and AvtoVAZ was signed on March 30, 2023. Grant based on the results of the competitive selection of projects for the implementation of Russian IT solutions within the framework of Decree of the Government of the Russian Federation No. 550.

According to AvtoVAZ, the purpose of this project is to create a solution for managing the processes of design and technological preparation of production while maintaining the existing logic of project development with the replacement of foreign software with domestic software, which "will solve the most important problem - ensuring the technical sovereignty of the enterprise."

The Russian manufacturer will begin implementing this project on import substitution of foreign software from June 2023. It is planned to complete it by November 2025.

Grant financing is carried out within the framework of the federal project "Digital Technologies" of the national program "Digital Economy."

According to experts, foreign specialized software by 2023 has nothing to replace. After the departure of foreign manufacturers in design institutes at automobile plants, there were licenses for free software for another two to three years of operation, and then engineers and designers will have to switch to domestic counterparts, many of which have not yet been created at the proper level due to the specificity and lack of demand in the industry and due to the fact that that this is not a mass software product, but complex solutions for several customers.^[9]

Closing of acquisition of 99% of Nissan Manufacturing Rus LLC for 1 Euro

AvtoVAZ JSC on February 7, 2023 announced the closure of the transaction on the acquisition of a stake in the authorized capital of Nissan Manufekchuring RUS LLC. The relevant documents were signed by the President of AvtoVAZ JSC Maxim Sokolov and the General Director of FSUE NAMI Fedor Nazarov. Earlier, the deal received approval from the Russian government. Read more here.

2022

AvtoVAZ was entrusted to manage the former Nissan plant in St. Petersburg

The former Nissan car plant in St. Petersburg, which belongs to FSUE NAMI, will be managed by AvtoVAZ, production at the enterprise is planned to begin in 2023.

Transition to Russian software

In mid-November 2022, AvtoVAZ told about the import substitution of information technologies in the company. The plant plans to complete the transition to software from Russian manufacturers in a couple of months.

AvtoVAZ noted that the company works with leading developers of Russia, including Yandex, Galactica, Omega Software and others, so that the international situation does not affect its work.

{{quote 'We took increased obligations to finalize our systems, the minimum functionality for production and logistics so that from January 1, 2023, no sanctions in the field of IT could stop the work of the plant, - said the head of the direction Alexander Alshin to the YouTube channel "At the Plant." }} He noted that AvtoVAZ will need from a year to a year and a half to achieve full technological sovereignty, full adaptation of systems and full functioning of all processes. In addition, according to Alexander Alshin, in the horizon of three to five years, AvtoVAZ plans to release its own industry software solutions for the automotive industry.

In October, at the International Automotive Scientific Forum, experts in the automotive industry RUSSIAN FEDERATION said that much foreign specialized software has yet to be replaced. After the departure of foreign manufacturers, the design institutes at the automobile plants had licenses for the open source for another two to three years of work, and then engineers and designers will have to switch to domestic analogues, many of which have not yet been created at the proper level due to the specificity and lack of demand in the industry and due to the fact that this is not a mass software product, but complex solutions for several customers. Basically, these are software solutions for design and complex virtual simulations Altair HyperWorks, tools for pre-processing CAE models ANSA and a multidisciplinary post-processor CAE calculations META.^[10]

Maxim Sokolov - head of Avtovaz

On May 23, 2022, AvtoVAZ announced the appointment of Maxim Sokolov as president of the company. The management at the plant changed after the transfer of its controlling stake from the French Renault to the ownership of the state. Read more here.

Difficulties with release due to stopping the supply of components against the background of Russia's special operation in Ukraine

2021

AvtoVAZ bought 40% of the United Automobile Technologies from KamAZ

On November 1, 2021, it was announced that AvtoVAZ bought 40% of the United Automobile Technologies (OAT) from KamAZ. Read more here.

Production of machines without a radio because of a shortage of parts

At the end of June 2021, it became known that AvtoVAZ began to produce cars without a radio recorder in the kit. The reason is the lack of parts. Read more here.

Nicolas More - the new president of AvtoVAZ

In mid-April 2021, AvtoVAZ announced the appointment of Nicolas Mora as president of the company instead of Yves Karakatzanis. Read more here.

2020

Revenue cut to €2.8bn

In 2020, AvtoVAZ received revenue of 2.8 billion euros against 3.38 billion euros a year earlier. AvtoVAZ's net loss according to international financial reporting standards for 2020 reached 196 million euros, while in 2019 the net profit of the Russian automaker was measured at 72 million euros. This was reported in the report of the Renault group, which includes AvtoVAZ.

It also says that AvtoVAZ's profit before taxes in 2020 increased 3.6 times compared to 2019 - from 21 million euros to 77 million euros, respectively. The company's capital expenditures for the year increased from 135 million euros to 172 million euros. Ruble indicators of the Russian enterprise are not given in the reports of the French concern.

The share of AvtoVAZ's revenues in Renault Group's turnover in 2020 amounted to 6.4%, while in 2019 this figure was slightly more than 6%.

Almost all sales of AvtoVAZ in 2020 fell on countries that are classified as a group in Renault's reports. " Eurasia The revenue of the Russian company in this region reached 2.78 billion euros against 3.32 billion euros in 2019. In countries, the Africa Middle East, India and the Asia-Pacific region, AvtoVAZ's revenue decreased to 11 million euros in 2020 from 14 million euros a year earlier. To Europe In both countries of the Americas, the company earned 2 million euros each by the end of 2020 against 42 million euros and 3 million euros, respectively. China AvtoVAZ did not sell anything either in 2020 or in 2019.

The report also reports that AvtoVAZ's real estate, production facilities, equipment and intangible assets by the end of 2020 are estimated at 1.57 billion euros against 1.74 billion euros a year earlier.

AvtoVAZ's long-term liabilities, according to a Renault report, grew by 22% in 2020, to 1.12 billion euros, short-term - by 18% to 1.02 billion euros.^[11]

AvtoVAZ sales, including exports, decreased by 5%

In 2020, AvtoVAZ sold 393,806 cars, including outside of Russia. This is almost 5% less than a year earlier, according to data from the French automaker Renault (the main shareholder of the Volga Automobile Plant).

As reported by RIA Novosti"" with reference to the published statistics, in 2020 AvtoVAZ, in particular, sold 383,983 cars and light commercial vehicles, as well as 9,823 Lada Chevrolet Niva cars after the transfer of the joint venture to AvtoVAZ in its entirety, against 412,970 Lada cars and 1,354 Chevy Niva in 2019.

The French automaker estimates the share of the Lada brand in the Russian passenger car market in 2020 at 21.5%. The most popular models remain Lada Granta and Lada Vesta, which for a long time have held leading positions among bestsellers.

We note with satisfaction the growth of purchasing activity, - says Olivier Morne, executive vice president of AvtoVAZ for sales and marketing, whose words are quoted in the message of the Russian automaker. - Best of all, the recovery of the situation is evidenced by the figures of our sales: so in June compared to April they increased more than 3 times! The effective operation of our dealer network, state support measures and Marky's own initiatives bring tangible results - Lada confidently continues to lead the Russian market by a wide margin from its closest competitors.

Also in the message of the European concern it is reported that Renault occupies the leading position in Russia, with 30.1% of the market share, which is 1.2 percentage points. more than in 2019. The French automaker also noted that the sale of Renault group cars in Russia decreased by 5.5%, while the market indicator as a whole decreased by 9.2%.^[12]

Rostec writes off AvtoVAZ debts by 20 billion rubles

In December 2020, it became known about the AvtoVAZ debt write-off scheme to Rostec. We are talking about the amount of 20 billion rubles.

As Kommersant writes with reference to the head of Rostec, Sergei Chemezov, half of the debt will be repaid by satisfying the company's requirements for the manufacturer of OAT components, the Rostec structure. The rest of the state corporation will simply forgive. Rostec's share in the authorized capital of AvtoVAZ as a result of these actions will decrease from 32.4% to 25%.

Chemezov clarified that the cancellation of AvtoVAZ's debts is associated with the transfer of Alliance Rostec Auto B.V. to Russian jurisdiction. By December 7, 2020, it is registered in the Netherlands.

In the period 2009-2012, the Russian side provided AvtoVAZ loans in the amount of 75 billion rubles, French partners also made their financial contribution to the development of the company. AvtoVAZ's total debt on these operations exceeded 110 billion rubles. Subsequently, by agreement of the parties, the main debt obligations were settled, they were partially converted into shares of the automaker during two stages of additional capitalization in 2016 and 2018. Then the Dutch joint venture Rostec and Renault Alliance Rostec Auto B.V. increased its stake in AvtoVAZ from the original 64.6% to 100%, including through the purchase of a minority stake.

The publication cites the opinions of lawyers who say that the government may demand the re-registration of the joint venture in Russia due to a constant decrease in Rostec's share in the capital of Alliance Rostec Auto, which reduces the state's influence on the decision-making process regarding the fate of AvtoVAZ.

In February 2020, Rostec, together with the shareholders of the alliance, announced their intention to take part in the financial recovery of AvtoVAZ.

As a possible scenario of support, additional capitalization is considered due to the introduction of additional funds into the company's share capital and the conversion of part of the debt, the state corporation reported then.[13]

Start selling all Lada models via the Internet

On April 16, 2020, AvtoVAZ announced the start of online sales of the entire Lada lineup. The innovation is associated with the self-isolation regime in Russia.

For online ordering and acquisition, all Lada models are available from the availability of official dealers. To make a purchase, you need to choose a car on the website lada.ru. The system itself will notify the dealer, and the car dealership manager will contact the client to remotely present the selected car and discuss the details of the transaction (trade in conditions, loan use, etc.). Installation of additional equipment is also available for order online.

After payment, depending on the situation in the region, the car can be picked up at a car dealership or ordered home delivery using a tow truck.

At the same time, according to the Russian Automobile Dealers Association (ROAD) and the car dealers themselves, in Moscow and the Moscow Region in mid-April 2020, the work of car dealerships was completely banned, including car service, which a few days earlier was available in the Moscow region. The most common offer of dealers is to leave an order for a car in order to receive it after the restrictive measures are lifted.

The ROAD website published a list of regions in which dealers are allowed to sell cars. By April 16, 2020, this opportunity is available in 10 constituent entities of the Russian Federation, including Mordovia and the Samara region. However, we are talking, as a rule, about giving buyers previously paid or booked cars, which they simply did not have time to receive due to the closure of car dealerships.

AvtoVAZ began selling all Lada models via the Internet a few days after the company resumed car production at factories Izhevsk in and Togliatti. The automaker was forced to quarantine enterprises in order to prevent the spread of coronavirus infection.^[14]

2019

Net profit - 385.5 million rubles

In 2019, AvtoVAZ raised 292 billion rubles, which almost exactly corresponds to the indicator of a year ago. The automaker's net profit reached 385.5 million rubles, while in 2018, net losses of 286 thousand rubles were recorded. We are talking about the first profit since 2012.

According to RIA Novosti with reference to the reporting of AvtoVAZ compiled under RAS, the cost of selling the company in 2019 amounted to 271.55 billion rubles, an increase of 1.4% compared to 2018.

Commercial expenses increased by 2.6% on an annualized basis, to 10.2 billion rubles, management expenses decreased by 2.2%, to 6.15 billion rubles, profit from sales fell by 46.2%, to 4.1 billion rubles.

It also follows from the report that by the end of 2019, AvtoVAZ's receivables in 2019 amounted to 19.18 billion rubles, rising by 43% compared to a year ago.

Long-term liabilities during this time decreased by 2%, to 81.35 billion rubles, short-term liabilities - by 24%, to 51.67 billion rubles, of which 41.34 rubles accounted for accounts payable, which is 25% less than in 2018.

According to its own data, in 2019 AvtoVAZ sold 362,356 cars, which is 1% more than in 2018. The update of the Lada lineup and favorable conditions for buying cars ensured growth even against the background of a fall in the market, while Lada's share in the segment of cars and light commercial vehicles increased from 20.0% to 20.6%, the company notes.

AvtoVAZ says the company is the leader in the Russian market, well ahead of its closest competitor. For the second year in a row, Granta and Vesta are the most popular cars in the Russian Federation: at the end of 2019, Granta ranked first with sales of 135,831 cars (+ 27.8% by 2018). In second place is Lada Vesta (111,459 cars of this family were sold, + 2.9^[15]

GM-AvtoVAZ stake buyout from General Motors

AvtoVAZ bought out a 50 percent stake in a joint venture with General Motors - GM-AvtoVAZ and became the owner of a controlling stake. Read more here

2018: Hidden cryptocurrency mining

On October 15, 2018, it became known that AvtoVAZ security officers found Tolyatti equipment for in one of the company's workshops, TLT hidden prey cryptocurrencies Pravda reported. The farm was hidden in the electrical cabinets of the 19th Conveyor Control Room.

Remote access to the equipment was carried out via USB 4G a -modem. According to to data the event log of the investigated control unit, the crypto farm has been operating since November 2017. Specialists also managed to identify the cryptocurrency wallet where the virtual coins arrived. Transactions from August 2016 to May 2018 were recorded in transaction logs for a total amount equivalent to more than 1.2 million. rubles

As noted, the total amount of AvtoVAZ's costs for stolen electricity since November 2017 amounted to 600 thousand rubles. As of October 2018, the identity of the miner has already been established, law enforcement agencies are working with him.^[16]

2015: Decline in car sales by 30.5% to 269 thousand cars

AvtoVAZ, the largest automaker in Russia, in 2015 compared to 2014 reduced sales of Lada cars by 30.5% from 387.3 thousand to 269 thousand cars, the press center of the enterprise said.

The total drop in sales of passenger cars in 2015 in Russia, according to AvtoVAZ, which occupies 17.9% of the Russian automobile market, amounted to 36%.

2014

Transfer of 500 workers to the production of foreign cars

AvtoVAZ workers are transferred to a workshop in which cars are assembled on the V0 platform - Nissan Almera, Renault Logan and Lada Largus (this is a rebranded Dacia Logan MCV). In the second quarter of 2014, about 500 workers will be additionally required to produce cars at the V0: welders on contact welding machines, painters and mechanic workers. This was reported to Izvestia in the press center of AvtoVAZ^[17]. The company's union says workers are being forced to transfer and is threatening to appeal to prosecutors.

• In

  connection with optimization of AvtoVAZ production personnel, the production of cars on the V0 platform is carried out by redistributing employees from other divisions of AvtoVAZ OJSC, the press center said.

From April 17 to 30, 2014, the main workshops of AvtoVAZ suspended the production of Lada Granta and Lada Kalina due to the oversaturation of cars in warehouses and dealers. Thus, only the production of V0 (the platform belongs to the Renaul-Nissan alliance) and the Lada 4x4 production complex will work. AvtoVAZ employees are transferred to B0 workshop on the basis of a personal statement. At the same time, the main criterion for working on B0 is readiness to work in 3-shift mode, and experience in the profession is also desirable. The process is underway as part of the optimization of the headcount, which was announced as a whole at the beginning of the year. It was stated that managers, specialists and employees would first be offered a transfer to existing vacancies.

At the same time, in the spring of 2013, there were massive unrest at AvtoVAZ due to the introduction of a third shift - that is, three teams work every day, which provide a round-the-clock schedule. Some employees refused to work at night and overtime without a salary increase.

- Appeals from workers of car production on the V0 platform at one time were received by the primary trade union organization AvtoVAZ, - representatives of the concern say. All these issues have been resolved to date.

According to the chairman of the AvtoVAZ trade union committee Sergei Zaitsev, the average salary at AvtoVAZ OJSC is 25.6 thousand rubles. In the workshops of the V0 - about 30 thousand rubles. (as of March 2014). From the fresh order of the president of the company, Bu Andersson, which is distributed at the plant among workers, it follows that each employee transferred to the V0 workshop will be additionally paid 20 thousand rubles in June 2014.

According to the chairman of the Unity trade union, Pyotr Zolotarev, the leadership forces workers to be forcibly transferred from one unit to another. In this regard, the trade union does not exclude collective actions soon, as an option, an appeal to the prosecutor's office is being considered.

- People are indignant at the violation of order, they say that psychological pressure is exerted on them, - says the interlocutor. - The workshop V0 difficult working conditions and low wages. We wrote a letter to Boo Andersson saying that people need to be motivated so that they want to go to these workshops.

As an example, Zolotarev cited a complaint from a worker who, according to him, recently appealed to a trade union.

- An employee worked in the production of AvtoVAZ as a forger-forger. He was offered to transfer to the V0 workshop as a mechanic for mechanical assembly work, but he refused. Then the management set him the condition that he goes out, like the rest, on a simple, but unlike others he will have to come on schedule to production and sit in the recreation area. In other words, management creates conditions under which the employee will quit on his own. This is also done in order not to pay several salaries upon dismissal, as well as so that the trade union is not indignant, - said Zolotarev.

AvtoVAZ came under the control of Renault-Nissan

In July 2014, it became known that the effective share of the Renault-Nissan alliance in the capital of AvtoVAZ exceeded 50%, the share of Rostec decreased to 24.5%, the Vedomosti newspaper reported. The alliance gained control over AvtoVAZ thanks to the concentration in its hands of 67.13% of shares in the Dutch company Alliance Rostec Auto BV, which owns 81.447% of ordinary and 47% of preferred shares of the Volga automobile plant. Rostec's share in the capital of Alliance Rostec Auto decreased by 32.87% of^[18].

The deal was completed on June 18, 2014, Renault-Nissan President Carlos Ghosn told Vedomosti. According to him, the completion of the transaction will not change the strategy of the enterprise - AvtoVAZ will still be a platform for the production of cars of both Lada and alliance brands.

As of April 2014, AvtoVAZ belonged to 50% of the Renault-Nissan alliance and 24.5% of the Russian Technologies state corporation.

Earlier, Rostec CEO Sergei Chemezov spoke about the possibility of liquidating Alliance Rostec Auto BV and switching to direct ownership of AvtoVAZ shares.

"The Dutch offshore has actually already been liquidated, this company does not manage financial flows. It was created solely for administrative management. Since the Dutch offshore practically does not exist, we will re-register here, to Russia, "Chemezov said in May 2014

.

At the last meeting of AvtoVAZ shareholders and the first meeting of the updated board of directors, the liquidation of the joint venture was not discussed. The representative of "Rostec" clarified that the joint venture will exist until 2016.

The main task of AvtoVAZ President Bu Andersson, according to Ghosn, will be to increase sales and share in the Lada car market and maintain brand leadership in the Russian automotive market.

Announcement of the release of Lada Priora until 2018

In July 2014, AVTOVAZ announced that the production of LADA Priora cars will continue until 2018, so a number of improvements will be made to the model.

"LADA

Priora has its own consumers who respect this car and are not going to give it up. For them, we are preparing a car renewal program, which is conditionally called Long Life. Now we are forming a complete list of changes and specifying production volumes for the next four years, "- said the director of the LADA Priora project Nikolai^[18]

.

AvtoVAZ plans to redesign the Priora bumper and lighting equipment, the steering wheel will receive electric heating, and new upholstery materials will be used in the cabin. The handling of LADA Priora will reach a higher level, thanks to the suspension settings like the Granta liftback in the luxury version. Gas-filled racks, negative camber angle of the rear wheels, new stabilizers and other equipment will be installed. In addition, a vacuum amplifier of increased size and new blocks, modified to eliminate creaking, will appear on LADA Priora.

Earlier it was reported that at the end of 2015 AvtoVAZ will begin mass production of Lada Vesta sedans, which will replace the Lada Priora family. The choice of a name at AvtoVAZ is explained by the fact that the Slavic name Vesta is associated with a home hearth, comfort, spring and the renewal of nature.

2013

According to the results of 2013, the French automotive group Renault recorded a net loss of 34 million euros from participation in AvtoVAZ OJSC. In 2012, participation in the capital of AvtoVAZ brought Renault a profit of 186 million euros.

2012: Tentative agreement to move control to Renault-Nissan

The main shareholders of AvtoVAZ as of April 1, 2012 were:

• state-owned company "Russian Technologies" (36.32%),
• ZAO IC Troika Dialog (19.64%) and
• French automobile concern Renault (25%).

About 20% of the company's shares were in the hands of individuals.

The Board of Directors of AvtoVAZ is headed by the general director of Rostechnologies Sergey Chemezov.

In May 2012, it became known that the French-Japanese alliance Renault-Nissan had previously agreed with Rostekhnologii Group of Companies on a scheme to buy a controlling stake in AvtoVAZ: the companies will create a joint venture that will acquire full control over the Russian auto giant. Renault-Nissan is expected to additionally invest about $750 million in the joint venture, and Rostekhnologii will carry out debt restructuring on favorable terms. Thus, Renault-Nissan will receive a controlling stake (67.13%) in the joint venture, which will control 74.5% of AvtoVAZ. Completion of the transaction is scheduled for 2014. By this time, the joint venture should buy out the entire stake in AvtoVAZ OJSC, owned by the Troika Dialog investment company.

Spring 2012 the plant launched the production of the "station wagon" Lada Largus, in November 2012. production of the Nissan Almera sedan starts.

2011: Purchase of IzhAvto plant

In October 2011, AvtoVAZ acquired the IzhAvto automobile plant for 1.7 billion rubles.

Since 2011, AVTOVAZ has stopped production of classic models (2105, 2107). It was stated that from 2014 it is planned to remove the Samara family from production.

Net profit of OJSC AvtoVAZ under IFRS increased almost 2 times in 2011 compared to 2010 to RUB 6.7 billion. At the same time, the revenue of the auto giant under IFRS was recorded at 175.1 billion rubles. (growth of 27.25% compared to 2010). Net profit of OJSC AVTOVAZ under RAS in 2011. amounted to 3.1 billion rubles. (an increase of 25.6% compared to 2010), revenue - 174 billion 846 million rubles. (+ 27.6%), including revenue from the sale of cars amounted to 138 billion 041 million rubles, which corresponds to the sale of 613 thousand cars. AvtoVAZ sales volume in 2011 on the Russian market amounted to 578 thousand 387 cars (an increase of 10.6% compared to 2010)

2010: The share of Rostechnologies increased to 36%, Troika Dialog decreased to 19%

In March 2010 AVTOVAZ's board of directors approved a business plan until 2020, according to which it was planned to increase production to 1.2 million units, as well as investments in the enterprise in the amount of up to 3 billion euros.

In the summer of 2010, the shareholders of AvtoVAZ signed an agreement on a phased increase in the authorized capital of the company, as a result of which the share of Rostechnologies in the auto giant by the spring of 2012. increased to 36.32% of the authorized capital, and the share of Troika Dialog decreased to 19.4%^[19]

2009

Crisis and loan of the state for 25 billion rubles

As a result of the economic crisis of 2008-2009 and the crisis of product sales caused by it in early 2009, AvtoVAZ fell into a difficult financial situation. As of the end of March 2009 its debt to suppliers amounted to about 14 billion rubles, in the first 9 months of 2009 its production almost halved. Fearing a social explosion due to mass layoffs at the city-forming enterprise, the state allocated an interest-free loan to the car plant for 25 billion rubles, thanks to which AvtoVAZ managed to pay off creditors. In addition, as part of state support, the AvtoVAZ model range fell under the state program for subsidizing interest rates on car loans.

In October 2009, AvtoVAZ in the presentation of the business plan for the first time admitted that it produces "extremely low" quality cars and called itself ineffective on many points. The poor quality of purchased components and the unwillingness of the plant management and local suppliers to invest in the modernization of production were especially noted. As a result, in November 2009 GC "Russian Technologies" and Renault signed a protocol on cooperation in the recapitalization of AvtoVAZ, providing for financial assistance to the plant from the Russian Federation in exchange for Renault's assistance in using the technologies of the Renault-Nissan alliance.

Support through the state program for the disposal of cars

Another step to support the automaker was the spring 2010 launch. the state program for the disposal of used cars, the main beneficiary of which was the Togliatti enterprise.

2008: Renault buys out company's blocking package

After a failed recovery attempt, it was decided to seek help from a foreign investor. However, to do this, it was necessary to first get rid of the opaque ownership structure of the plant. In this regard, the investment company Troika Dialog was taken as assistants, which bought up the shares of the enterprise, becoming one of its shareholders. As a result, in January 2008, three "subsidiaries" of AvtoVAZ were liquidated, and in February, the blocking stake in the plant was sold to the French concern Renault for $1 billion. As a result of the transaction, the shares of the auto giant were distributed as follows:

• state-owned company "Russian Technologies" - 25%,
• CJSC "IC Troika Dialog" - 25% and
• French automobile concern Renault - 25%.

2005: Chemezov as Crisis Manager

As a result, Sergei Chemezov, who was then gaining strength at Rosoboronexport (later included in Rostekhnologii), was chosen as the anti-crisis manager at AvtoVAZ, who also had a large administrative resource. When in 2005 AVTOVAZ came under the control of Rosoboronexport, Chemezov relied on synergy between AVTOVAZ and defense industry enterprises, promising to bring high technologies in mechanical engineering from the military industry. However, it soon became clear that it was not possible to raise the auto giant on its own.

2001: GM-Avtovaz JV

In the early 2000s, the situation in the Russian automotive market began to change sharply. On the one hand, Russian consumers have ceased to be satisfied with the low quality of domestic cars. On the other hand, foreign manufacturers began to actively deploy their production in Russia, and prices for their cars began to dangerously approach the dollar value of the new "ten." In 2001, AvtoVAZ tried to turn the situation in its favor by creating a joint venture with General Motors with the participation of the EBRD.

On June 27, 2001, representatives of General Motors, AvtoVAZ and the European Bank for Reconstruction and Development signed a General Framework Agreement on the establishment of the enterprise. The joint venture itself was created at the constituent meeting on July 30, 2001 and received registration with the Ministry of Justice of Russia on August 2, 2001.

Recruitment began on August 27 and construction work began on October 2001.

The contribution of the parties to the authorized capital of the joint venture amounted to 238.2 million: dollars USA

• General Motors - 99.1 million cash and equipment (41.61%);
• AVTOVAZ - 99.1 million intellectual property (patents, certificates and trademark for the NIVA car, model 2121), engineering systems, buildings and structures (41.61%);
• The European Bank for Reconstruction and Development (EBRD) - $40 million in cash (16.78%) and a $100 million loan.

Soon, the GM-AVTOVAZ joint venture began production of the Chevrolet Niva car, but the situation did not change significantly.

1995: Issue of "The Ten"

As for the technological sphere, like most domestic enterprises, VAZ was very worried about the first post-perestroika years. Despite the presence of demand and relatively high production volumes, the release of new cars was delayed. The situation was aggravated by the criminal system for selling auto giant products, thanks to which the proceeds settled in the pockets of intermediaries, and there were no funds left for modernization. So, developed back in 1989, the "ten" model (VAZ-2110) was released only in 1995, when it was already morally outdated.

1993: Demonstration of "dozens" to President Yeltsin in the Kremlin

1989: Speculation by Berezovsky

Foreign automakers could hardly compete with Russian ones - the price difference was too big. With raw materials and labour costing little at the time, there were truly huge opportunities for car sellers. As a result, real gangster chaos unfolded around the plant. Numerous intermediaries who sold cheap VAZ cars at exorbitant prices profited from the parent company and did not want to cede their market share to competitors.

It was at this time that Boris Berezovsky appeared at the plant in 1989, with the filing of which the company "LogoVAZ" was created on the basis of the automobile plant. And although the company's tasks initially included maintaining the plant's maintenance system, subsequently it was mainly engaged in the sale of its products, receiving large revenues from the difference in selling and market prices.

In August 1994 Berezovsky joined the board of directors of the automobile plant, which by that time had already been corporatized and transformed into AvtoVAZ OJSC. To gain control over the enterprise, B. Berezovsky and the then chairman of the board of directors of the plant, V. Kadannikov, came up with a "ring" scheme for its corporatization, according to which AvtoVAZ owned several enterprises, which in turn owned AvtoVAZ. So, at first, the VAZ management chose the management of these enterprises, in response, representatives of these enterprises chose who would lead AvtoVAZ. Thus, in order to control the plant, it was not necessary to buy up its shares, it was enough just to get key posts. This ownership scheme has been preserved at the plant even after in 1995. V. Kadannikov officially terminated the cooperation of the plant with Logvaz Berezovsky, who by that time owed the company a large amount of money.

1980

1977: "Niva" SUV

In 1977, the company began producing the Niva off-road vehicle (VAZ-2121).

Although VAZ cars were designed mainly for the domestic market, they sold well abroad. At the peak of 1979, about 40% of Vaz small cars were sent abroad.

It is also known that in the late 70s - early 80s, VAZ was actively developing domestic electric vehicles. However, they never entered mass production.

In the late 80s and early 90s, against the backdrop of the crumbling Russian economy, VAZ was confidently afloat, producing almost the only Russian product that Russians were ready to buy. The demand for passenger cars of the auto giant (by that time front-wheel drive hatchbacks Samara (VAZ-2108) and Sputnik (VAZ-2109), as well as the subcompact Oka) were already added to the "classic" sedans and Niva) constantly exceeded supply.

1973

Millionth car released

In December 1973, the company produced its millionth car.

Lada presentation in New York

1976: The beginning of the release of the "six"

In subsequent years, the automobile plant regularly updated its lineup. Within 10 years, seven classic Zhiguli models were released, the most popular of which was the VAZ-2106, the famous "six," released into production in 1976 (ceased to be produced only in 2006).

1971: Joining component suppliers

In 1971, in order to unite suppliers of components for the production of VAZ small cars, the Volga Association for the Production of Cars (AvtoVAZ) was formed on the basis of the Volga Automobile Plant. Three enterprises were included in the association:

• Belebeyevsky plant "Autonormal,"
• Dimitrovgrad Automobile Unit Plant,
• Skopinsky Automobile Plant.

Previous titles:

• Volga Automobile Plant (VAZ) (1966-1971),
• Volga Association for the Production of Passenger Cars "AvtoVAZ" (since 1971).

The company produced cars of the VAZ brand with the names:

• "Zhiguli,"
• "Niva,"
• "Sputnik,"
• "Samara,"
• "Oka."

1970: Issue of the first "kopecks"

Already in 1970, the first six cars of the Zhiguli VAZ-2101 were produced at a new enterprise called the Volga Automobile Plant (VAZ), later this model was popularly nicknamed the "penny."

The design VAZ-2101 albeit with modifications, copied the Italian model Fiat-124 1966. At the same time, materials and components for cars were used exclusively by Soviet ones.

1960s: Plant construction

The official date of registration of AVTOVAZ OJSC is January 5, 1993. However, in fact, the history of the plant began much earlier - in the 1960s.

In 1966, Chairman of the Council of Ministers of the USSR Alexei Kosygin set the task of building a new automobile plant. It was decided to place the largest passenger car production enterprise in the Soviet Union in the city of Tolyatti, Samara Region, where in 1967 its active construction began, according to good Soviet tradition, announced by the shock Komsomol construction site. The technical construction project was prepared by the Italian automobile concern Fiat, which also pledged to supply the main technological equipment to the new plant and train specialists. Production equipment for the plant was created at domestic factories, enterprises of the socialist community, as well as Germany, Italy France England, USA and other countries.

Notes