04-16-2007, 10:04 PM
Russian Cars Are Hopeless: Top Government Official in Russia Says So
Source: Inside Line
4-16-2007
MOSCOW, Russia ââ¬â At a recent press conference, Russian Deputy Prime Minister Sergey Ivanov told media that he thinks there are no "promising" models produced by Russian car companies and the domestic industry has no viable future.
Notwithstanding the influx of Western carmakers into Russia ââ¬â General Motors, Nissan, Toyota and Volkswagen are taking the lead in setting up production facilities here ââ¬â the biggest players are still the Russian auto companies AvtoVAZ (producer of Lada cars) and GAZ. With that in mind, Ivanov's frustration is understandable. The best-selling Lada is still based on a 1960s rear-wheel-drive Fiat, while GAZ is producing a relic of the 1980s in the form of the Volga executive sedan and a take on the early 1990s Ford Transit. The very worst offenders, cars like the Oda Fabula and the Moskvitch, are gone ââ¬â victims of changing times and higher consumer standards.
Ivanov's frank admission must come as an unwelcome surprise for AvtoVAZ, which is trying to get state aid to develop new models. Anyone with a casual interest in the complex web of intrigue that is Russia will expect that there is a subtext, and there is: Ivanov has ambitions to become president someday. One of his biggest rivals is Sergey Chemezov, head of state-owned arms exporter Rosoboronexport. Chemezov's company took control of AvtoVAZ in late 2005 and is now trying to convince the government to fund its new-model development program.
What this means to you: It may be politically motivated, but Ivanov's frank admission is still a breath of fresh air.
Source: Inside Line
4-16-2007
MOSCOW, Russia ââ¬â At a recent press conference, Russian Deputy Prime Minister Sergey Ivanov told media that he thinks there are no "promising" models produced by Russian car companies and the domestic industry has no viable future.
Notwithstanding the influx of Western carmakers into Russia ââ¬â General Motors, Nissan, Toyota and Volkswagen are taking the lead in setting up production facilities here ââ¬â the biggest players are still the Russian auto companies AvtoVAZ (producer of Lada cars) and GAZ. With that in mind, Ivanov's frustration is understandable. The best-selling Lada is still based on a 1960s rear-wheel-drive Fiat, while GAZ is producing a relic of the 1980s in the form of the Volga executive sedan and a take on the early 1990s Ford Transit. The very worst offenders, cars like the Oda Fabula and the Moskvitch, are gone ââ¬â victims of changing times and higher consumer standards.
Ivanov's frank admission must come as an unwelcome surprise for AvtoVAZ, which is trying to get state aid to develop new models. Anyone with a casual interest in the complex web of intrigue that is Russia will expect that there is a subtext, and there is: Ivanov has ambitions to become president someday. One of his biggest rivals is Sergey Chemezov, head of state-owned arms exporter Rosoboronexport. Chemezov's company took control of AvtoVAZ in late 2005 and is now trying to convince the government to fund its new-model development program.
What this means to you: It may be politically motivated, but Ivanov's frank admission is still a breath of fresh air.