Avtovaz |
Reference Material on Avtovaz |
Avtovaz is Russia's largest car maker, but it was only last year that it produced the first Lada model with an airbag. That is emblematic of the company's behind-the-times nature, even as the domestic market is exploding with a growing middle class clamoring for cars.
Avtovaz is losing market share fast; foreign brands accounted for a third of sales in 2005, up from just 5 percent in 2000. Avtovaz competes on price only and cannot pass on modernization costs to consumers because of declining sales, analysts say. A new Lada sells for about $6,000. Late last year, Avtovaz's board was taken over by government officials who want to force a turnaround, Kremlin style, by re-nationalizing the company in a planned state-run automotive holding. ANDREW E. KRAMER (NYT) |