Autovaz Soldiers On, Despite Renault Retreat

Russian auto manufacturer of the Lada brand and Renault Group subsidiary, Autovaz Group, announce that they will do everything possible to safeguard its 40,800 jobs and re-establish supply chains to keep production going, after the French parent group’s suspension of activities in Russia, undertaken in response to political pressure in the wake of Russia’s military operation in Ukraine.

Concise and to the point, if not especially detailed, Autovaz’s statement does not go into detail about the legalities, or lack of, as they pertains to the French manufacturer’s contractual obligations, nor does it bring up the possibility of Russian nationalization of Renault assets and investments, which leads one to conclude that a rapprochement in relations remains a possibility on the horizon.

However, the statement does allude to a reduced output over the summer vacation period, until supply chains are restored, with interim Lada models being produced using a reduced number of imported parts, so as to fulfill obligations to customers, employees, dealers and partners in Russia and abroad.

– Press Release –


24 March 2022, Tolyatti, Russian Federation – Further to recent announcement by Renault Group, the management of the AVTOVAZ Group is closely monitoring the situation and is in constant contact with federal and regional authorities, as well as with the Company`s shareholders. Over the past weeks, all possible measures have been taken to ensure the preservation of the jobs of our 40,800 employees. In particular, we decided to pull ahead this Summer corporate vacation to 4-24 April 2022, and we will do our best to use this period to restore our supply chains. In addition, active work is underway to substitute some critical imported components with alternative solutions. The company is also preparing special versions of some LADA models with reduced exposure to imported components. These will be available to our customers in the coming months, progressively.

AVTOVAZ Group is aimed to fulfill its obligations towards its employees, suppliers, dealers and partners throughout the Russian Federation and export markets.

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