AVTOVAZ announced a resumption of production of LADA NIVA Travel SUV. On August 15, car assembly for the 2022 model year began.LADA NIVA Travel is fitted with a permanent four-wheel drive system with the ability to downshift and lock the central differential. High cross-country performance is combined with excellent quality of ride and comfortable five-seat interior.In basic version, the 2022 SUV will feature power steering, front power windows, power heated side mirrors, ERA-GLONASS system with mechanical activation system, steering column height adjuster and LED taillights. The list of equipment for LADA NIVA Travel of the 2022 model year is reinforced with a steel crankcase, on-board computer, central locking and pre-installed wire harness for audio system. Prices and trims of the 2022 LADA NIVA Travel will be announced later.“We continue to pursue our strategy of resuming the production of our model line-up. In parallel, work is underway to expand the list of comfort and safety options of manufactured cars. Thanks to the professionalism and dedication of the entire AVTOVAZ team, the support of federal and regional authorities and current state program of concessional lending, we will actively continue this work and offer our customers affordable cars with the optimal equipment level,” commented Maxim Sokolov, the CEO of JSC AVTOVAZ.It is worth reminding that the buyers of LADA NIVA Travel (as well as LADA Granta and NIVA Legend) cars produced after June 1, 2022, will benefit from a unique state program of preferential lending, which makes it possible to purchase a new car with a 20-25% benefit, depending on the region. The offer is available to families with at least one minor child, doctors and teachers, as well as drivers buying a vehicle for the first time. In addition, the conditions apply to those who trade-in a car older than six years, provided that they have owned it for at least a year. The program is valid until December 1, 2022.
LADA resumes sales of cars equipped with ERA-GLONASS emergency alert system. From August 1, all models of LADA Granta and LADA NIVA Legend families in the trim levels of the 2022 model year will get this device.In LADA Granta and NIVA Legend versions of the 2022 model year, ERA-GLONASS system features a mechanical activation system: in the event of a traffic incident, the dispatch service is called by manually pressing a button located in the ceiling unit. The call takes place via cellular communication channels, while ERA-GLONASS works even if the main power supply of the car is turned off.“One of priority tasks for LADA is to improve vehicle safety, so we did our best to return ERA-GLONASS system to Granta and NIVA families as soon as possible,” commented Dmitry Kostromin, Vice President for Sales and Marketing of JSC AVTOVAZ. “We are also making every effort to diversify the list of comfort and safety options in the near future.”It is worth reminding that the buyers of LADA Granta and NIVA Legend cars produced after June 1, 2022 may currently take advantage of a unique state program of preferential lending, which makes it possible to purchase a new car with a 20-25% benefit, depending on the region. The offer is available to families with at least one minor child, doctors and teachers, as well as drivers buying a vehicle for the first time. In addition, the conditions apply to those who trade-in a car older than six years, provided that they have owned it for at least a year. The program is valid until December 1, 2022.
- Production of LADA Vesta will be moved to Togliatti- LADA-Izhevsk will continue its work and will produce a fundamentally new version of LADA e-Largus- Additional measures have been introduced for the personnel of LADA-Izhevsk to ensure employment and opportunities for individual developmentAVTOVAZ, as part of creation of a new development strategy for the Company, makes the first decisions on the changes in industrial policy and the use of production sites in Togliatti and Izhevsk. These steps will provide employment for all 42,000 employees of AVTOVAZ Group and will help minimize production and logistics costs. The decisions were announced by the CEO of JSC AVTOVAZ Maxim Sokolov during the meeting with the Head of Udmurtia Alexander Brechalov, which took place on August 4, 2022 in the territory of LADA-Izhevsk plant.In particular, the Board of Directors of JSC AVTOVAZ approved the decision to transfer the production of LADA Vesta family cars to the main site in Togliatti - B0 line with capacity of up to 60 jph. The restart of LADA Vesta production is scheduled for early spring 2023.Based on the tasks set for the Company by shareholders, as well as the forecast for development of the Russian automotive market in 2023, the productivity of LADA-Izhevsk (up to 32 jph) will be insufficient to meet the demand. At the same time, LADA-Izhevsk plant will continue to develop. The production of an innovative product will be arranged here - a fundamentally new electric version of LADA e-Largus (project details will be provided later). The company will also continue to develop production of components for LADA Vesta (stamping production, plastic parts production, etc.). Service and support functions will remain as well. CEO of JSC AVTOVAZ Maxim Sokolov: “LADA-Izhevsk plant is important for AVTOVAZ, the company will continue to operate and develop. Moreover, production of an innovative product will be organized here - the electric version of LADA e - Largus, which we presented today. In the existing environment of sanction pressure and a growing number of variables, we are taking comprehensive measures to maintain employment in Izhevsk plant and provide comprehensive support to its employees.”The Head of Udmurtia Alexander Brechalov: “We are taking all measures for employment and social adaptationof LADA-Izhevsk workers who are at risk of being laid off. Supervisors have been assigned to the company in the Republican Employment Center, and temporary jobs have been organized for more than 1,500 employees. In addition, 130 people have already been transferred to other enterprises of the republic. Optionally, employees will be able to receive additional education free of charge. Thus, 61 people will start training and retraining in September,” said the Head of Udmurtia Alexander Brechalov.He also added that the foundation for the development of e-transport in Udmurtia has been laid. Owners of electric cars registered since January last year are exempt from paying transport tax. “We are now expanding the network of charging infrastructure for electric cars. Today, there are approx. 10 charging stations available in the republic. At the end of last year, the administration of Izhevsk agreed with a branch of Rosseti on construction of three more new charging stations in the city in 2023. At the end of August, one of the future residents of EXCEl-Sarapul Technopark will start making charging stations for electric cars,” the Head of the Republic said.It is worth reminding that AVTOVAZ has introduced a package of additional measures to enhance man-loading and development of its subsidiary LADA-Izhevsk. The package includes measures to support the team and ensure its employment. These measures are being implemented in connection with the ongoing crisis in the supply of components for LADA Vesta model and suspension of its production.Support measures are divided into two main blocks. The first block is related to development of production and ensuring the maximum possible workload for personnel of LADA-Izhevsk plant. The second block contains various forms of staff support. This includes assistance in finding employment and payments to plant employees who have expressed interest in moving to other companies (today, there are over 10,000 jobs available in Izhevsk).Within the framework of the first block, it is planned, in particular, to continue the development of the stamping production and plastic parts production of Izhevsk plant with the purpose of localizing previously imported components. The first block also includes:- Production launch of an innovative model LADA e-Largus at Izhevsk plant;- Retraining and staff transfer within the plant, as well as the possibility of transfer within AVTOVAZ Group.Additionally, LADA-Izhevsk plant will continue to provide service and support functions.In addition, it is planned to create LADA-Izhevsk Industrial Park, including involvement of resident manufacturers of non-automotive products to create new jobs. When opening LADA-Izhevsk Industrial Park, the successful experience of the same park in Togliatti, where more than 2.5 thousand jobs were created, will be used.The block of support for employees who have expressed interest in moving to other companies includes the following measures:- Offering employees permanent jobs at other enterprises of the city and the region. For its part, the Company will support employees moving to other enterprises by paying 5 average wages or 12 minimum wages (whichever is higher);- Retraining at the expense of the Company for new professions that are in demand on the labor market of Izhevsk and the Udmurt Republic, with subsequent assistance in finding employment;- The Company will also provide financial aid to employees who have decided to quit by agreement of the parties, in the amount of 5 to 7 average wages (depending on the length of service in the Company).The package additionally provides for a one-off payment to employees approaching retirement age who have expressed a desire to retire early, in the amount of 7 average wages.In addition, a decision was made to extend paid parental leave until the end of 2023 or until the child reaches 4 years of age (whichever comes first).AVTOVAZ emphasizes that the Company will continue the development of LADA-Izhevsk plant. No massive layoffs are planned. The above team support measures will be promptly provided to employees who have expressed an interest in receiving them.