VAZ returned to the "Field" from overseas "Polona"

9 December 2019

The long-anticipated redemption AVTOVAZ JV with GM place!

It is now so long expected, even the unexpected message that the Federal Antimonopoly service (FAS) approved the repurchase of AVTOVAZ shares of the American concern General Motors in their joint venture, GM-AVTOVAZ in Togliatti.

While the parties own the shares of the JV in the ratio of 50:50. Financial details of the deal have not yet been disclosed, but we already know that in a short time, JV GM-AVTOVAZ will pass the procedure of rebranding. Any changes, to employees of both firms are planned. Existing contracts with suppliers and dealerships of the brand "NIVA" will remain unchanged during the transitional period.

President Yves Karakatsanis said, "I am grateful to our partners from GM for more than 18 years of fruitful cooperation. Under the agreement, AVTOVAZ will get a second classic SUV in the lineup... Niva seamlessly complement the legendary 4x4 and will support the further development of AVTOVAZ".

Rather, it seems significant that along with the joint production of AVTOVAZ is regaining its lost was the Niva brand (and "field" identity – ed.) pre American concern for virtually nothing at the dawn of the founding of the joint production in 2001. While the company will continue the production of SUVs under the designation of the Chevrolet Niva, but in the near term SUV will also host the re-branding of the LADA.

As a result, in the line of AVTOVAZ will be both related to the design of the SUV – LADA 4x4 classic (still called "old field" – ed.) and the former joint Niva (LADA Niva now apparently despite the fact that its underlying sector index, obviously, so will not change – VAZ-21236).

While the exact timing of the rebranding is yet to be named.

background: the joint venture "GM – AVTOVAZ" was founded in 2001 and also the Chevrolet Niva, a short-lived (less than four years) produced the Chevrolet Viva sedan represents begininning version of the model Opel Astra G. due to extremely high prices Viva has suffered market failure. In 2014 SP pristupite to the development of the SUV Chevrolet Niva II, but to the production of the model is not reached. In addition, even the planned capacity (98 thousand cars a year) the plant GM-AVTOVAZ to withdraw was not in condition (not in ine of AVTOVAZ – ed.) – record annual proizvoditelnosti was delivered in 2012, when JV went 62 981 SUV, after which production has fallen only from year to year (so 9 months of 2019, according to "ASM-holding" made only 11 of 518 units of Chevrolet Niva, which is 23.5% less than in the same period of 2018 – ed.).

PS Such final disposition as if ordained by the motion GM from the Russian market, which began with the collapse of Chevrolet and Opel (then owned by GM) in 2015.

When, after a display of prototype Chevy Niva II MIAS 2014, soon followed by the failure of Detroit from its introduction in the series, it became clear that the final withdrawal of GM from Russia – only a matter of time. In the development of the production model Niva ensuing nearly five years, almost nothing is invested, so that AVTOVAZ had only to wait for transatlantic partner he wants to get rid of the share in the joint venture.

However, AVTOVAZ is nothing sort of "cutting-edge" in the production plan from a given plant sample is still the early 2000s and will not receive. It is also evident that such a complete rejection of the Russian market takes place on the eve of a new round of anti-Russian sanctions (by the way, a 4-year WADA ban on the performances of our athletes in Competitions and Championships here, only the first, but the characteristic "bell") and therefore the "Group GAZ" us Congress (that's where Washington and where is Nizhniy Novgorod?!) yet given a six-month delay – that American investors had to withdraw their capital.

It is now to change sudiba the project "Niva-2" it is too early to speculate, but it is obvious that in the absorption of the main competitor AVTOVAZ will no longer be a reason to abandon the transition to the platform with a transverse engine (concept LADA 4x4 Vision), although the domestic market is still demand for classical "Field", which, I think, it would be quite possible to maintain on the basis of developments in second generation Cherolet Niva II.

By the way, now also unclear was the fate of the model LADA 4x4 5-dr, i.e., a the VAZ-2131, which now is in direct domestic competition with LADA Niva. And yet even such similar units of the models have their own consumer segments and it would be a pity if "31", finally reaching the normal conveyor Assembly, before the time would fall a victim of corporate cannibalism.

P. P. S. I Remember the campaign in the media (including our edition "SUV" and "Car world"), a long-standing 2003 on the protection of the production of the old "field", when the "blue eye" representatives of the American side strongly insisted on folding her release on the grounds that de new Chevrolet Niva is better: "she's new" – wondered the then U.S. President SP, openly evil, because at the time of the launch of the Chevy Niva its retail price in rubles was twice higher than the VAZ-21214 "Niva", which fully diluted consumer audience of these models on the market. The management of AVTOVAZ nearly lost to overseas pressure and not slaughtered "almost a chicken lays Golden eggs", but just changed his mind and kept production of the old model "prior to SP full capacity" as it seemed temporary, but our experience shows that temporary and we have the most durable. So now I would first of all not even the Chevy Niva "has pererepenko" in LADA, and in parallel with the new upgrade would return the name of the Niva to the current model 4x4 it would be a very significant marketing progress! Nevertheless, I congratulate all Russian motorists with return to home (on native soil) of the most famous and loved domestic brand "field"!


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