Russian Car Industry: Great Expectations / News / News agency Inforos
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Russian Car Industry: Great Expectations

The AvtoVAZ Car Plant, located at the city of Togliatti on the Volga, proposes to launch mass-production of the new LADA 112 coupe starting from May this year. Some 5,000 new cars may be turned out by the end of 2006. It will be distinct from the LADA 112 base model in 130 elements, 57 of them referring to the car body. Besides, the new car features a modernized dashboard, new-design seats, and stylish interior decoration.

The new LADA 112 coupe will be produced in several modifications: with an extended set of options, with a 1.8-liter engine, and with a racing sports suspension. In future, producing a full-drive transmission modification is planned.

The car will be produced at an AvtoVAZ pilot assembly plant. At the same plant 3,500 cars LADA 110 Т and 8,000 cars LADA 4х4 (five-door elongated traditional Niva) will also be manufactured in 2006.

AvtoVAZ is the biggest car producer in Russia. Last year its sales on domestic market went up by 3.7 percent and reached 648,000 cars, while its production was 721,492 cars, which is 5.4 percent above the target figure and 0.4 percent higher than in 2004.

LADA cars occupy a leading place not only on Russian market, but also in a number of neighboring countries. Thus of the 265,500 new cars sold last year in Ukraine, 90,900 fell on the AvtoVAZ Plant in Togliatti. All in all, the share of this Russian brand increased by 5 percent in Ukraine over one year, from 29.2 to 34.2 percent. AvtoVAZ cars are also leaders in Moldavia, where their share represented 36 percent of all sales last year.

While "Avtovaz" is considered to be the center of Russian car production, "Avtotor" company in Kaliningrad produces only cars of foreign brands. Yesterday it began to assemble American Hummer-H3 off-road cars. The cars are assembled in cooperation with "General Motors" corporation. It is proposed to assemble 150-200 such cars this year, says "Avtotor" president Vladimir Shcherbakov.

Hummer-H3 cars will cost around $50,000 - $60,000 depending on the modification. All cars feature 220-HP 3.5-liter engines and, as a rule, an automatic gearbox. At present "Avtotor" assembles Hummer-H2, off-road Chevrolet cars and a number of Cadillac models, Korean cars and even BMW. Top management of the plant has begun negotiations with Chinese manufacturers of "Chery" cars on building a full-cycle plant.
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