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News // Autos

AvtoVAZ will launch production of a new budget car in 2011

14 July 2010 , 08:50RIA Novosti2206


Russia's largest carmaker AvtoVAZ expects to begin production of a new budget car at the end of next year, the company's CEO said on Tuesday. "We plan to launch production of this car, designed by AvtoVAZ and French experts on the basis of the Lada-Kalina model," Igor Komarov told Russia's Prime Minister Vladimir Putin. He also said that AvtoVAZ had launched a project on the production in March 2012 of five models of three brands on the Renault BO platform. AvtoVAZ will reconsider relations with suppliers and give priority to foreign producers, Komarov added.

The company's sales have been boosted by a recent car-scrapping initiative. Under the program, the government gives motorists 50,000 rubles toward a new Russian-built vehicle if they turn in a car older than 10 years to be scrapped. "We achieved positive results and increased sales due to the utilization program. Sales doubled in the second quarter against the first quarter," Komarov said. AvtoVAZ, one of the largest carmakers in Eastern Europe, has the facilities to produce more than 800,000 cars a year. In 2009, the company's sales plunged by 44% compared with 2008 due to the financial crisis. 

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