Trying to Save Russia’s Punch Line of a Car
By NEIL MacFARQUHAR
DEC. 21, 2014
TOGLIATTI, Russia — Ladas are the family cars that Russians love to hate.
Loathed as outmoded rattletraps, they have long inspired more punch lines than passion: How many people does it take to drive a Lada? Four; one to steer and three to push.
Conversely, Russians cherish Ladas as the last major Soviet car brand still produced from scratch. Of the estimated 40 million cars in Russia, more than one-third are Ladas, and the Granta, a small sedan, outsells every other car.
Yet they are endangered. The company’s market share diminished steadily after the Soviet Union collapsed, dropping to 17 percent from 70 percent. Long before the recent oil price collapse pummeled Russia’s economy, the Kremlin decided Lada needed rescuing.
It recruited Bo Inge Andersson, a blunt Swedish-American executive with long experience in Detroit, to overhaul Avtovaz, Lada’s corporate parent and a signature Russian industrial company.
“The biggest focus for us is to bring back the pride in Lada,” Mr. Andersson, 59, said during what seemed like a speed-walking race here through one of the world’s largest auto plants.
CONTINUE AT NYTIMES.COM
By NEIL MacFARQUHAR
DEC. 21, 2014
TOGLIATTI, Russia — Ladas are the family cars that Russians love to hate.
Loathed as outmoded rattletraps, they have long inspired more punch lines than passion: How many people does it take to drive a Lada? Four; one to steer and three to push.
Conversely, Russians cherish Ladas as the last major Soviet car brand still produced from scratch. Of the estimated 40 million cars in Russia, more than one-third are Ladas, and the Granta, a small sedan, outsells every other car.
Yet they are endangered. The company’s market share diminished steadily after the Soviet Union collapsed, dropping to 17 percent from 70 percent. Long before the recent oil price collapse pummeled Russia’s economy, the Kremlin decided Lada needed rescuing.
It recruited Bo Inge Andersson, a blunt Swedish-American executive with long experience in Detroit, to overhaul Avtovaz, Lada’s corporate parent and a signature Russian industrial company.
“The biggest focus for us is to bring back the pride in Lada,” Mr. Andersson, 59, said during what seemed like a speed-walking race here through one of the world’s largest auto plants.
CONTINUE AT NYTIMES.COM