The domestic automaker AvtoVAZ can completely leave the European Union Market due to the introduction of new emission requirements.
The domestic automaker AvtoVAZ can completely leave the European Union Market due to the introduction of new emission requirements. This alarming «Nabat» recently sounded from the death of the head of the Republic of Udmurtia Alexander Brechacha. Our channel decided to figure it out in this matter and that’s what we found out.
«We are standing before the threat that from 2020 AvtoVAZ will completely go from the EU market, and this is about 5,000 cars per year or 50 million euros per year, in connection with the introduction of new CO2 emission requirements»
Recall that on the territory of Udmurtia is the assembly plant «Lada Izhevsk», on which one model is produced today —
Five thousand Lada Vesta cars, which are exported to EU countries, not such a significant amount for Izhevsk enterprise, which
The main question arises why the head of Udmurtia, where there has never been such a branch of production as a car engine building, the introduction of strict standards in the European Union market and attracting public funds?
Recall that Izhevsk Automobile Plant, built in the 60s of the last century, did not have a motor-building unit. The supply of force aggregates for cars «IZH» was carried out by the Ufa Plant Avtomotor (Uzam), which also carried out a complete set of Moskvich cars.
Over time, AvtoVAZ engines began to install in Izhevsk cars.
Today, when the Izhevsk playground is an integral part of the domestic auto giant. Motor competence of cars collected in Udmurtia Lada Vesta, in the hands of Togliatti top management. Moreover, rather in the hands of the RENAULT GROUP management, which includes a cargoant.
And accordingly, all key management decisions are made not in Udmurtia, and not even in Tolyatti, but in other cities outside the Russian Federation. Recall that AvtoVAZ belongs to Alliance Rostec AUTO B.V., a company registered in the Netherlands. This is 100% owner and the only shareholder of AvtoVAZ.
But why does the Udmurt leader draws attention to the problem of tightening standards in the European Union, the problem of creating a domestic motor corresponding to strict standards for the domestic car?
Most likely, they are moving concern for the enterprise in the territory entrusted to him. Less volume of car produced, incorporated EURO standards, less tax revenues to the budget of the republic. Today Lada Izhevsk is the largest republican budget donor.
As a result of the first 9 months of 2019, AvtoVAZ sold 4,150 vehicles in the markets of the European Union, which is 8% less than in the same period last year. In addition, AvtoVAZ in the spring of this year decided to stop supplying Lada cars to Europe. The reason for the care of AvtoVAZ from Europe at the enterprise was then called tightening standards due to the introduction of the EURO 6D-TEMP standard. And to fit them, it is necessary for serious investments in the modernization of engines.
Meanwhile, the press service of AvtoVAZ stated that the company had plans to create in close collaboration with partners from the Renault Group global LADA model and return to the EU market.
Recall that the main Renault Group player in the EU markets is the Dacia Romanian brand. Also, some cars in Europe comes from the Turkish Renault-Oyak enterprise.
On Romanian Dacia and on Turkish Renault, motors of the development of the Franco-Japanese alliance are installed. Let’s see this process using the example of this Turkish Renault-Oyak enterprise. It even reminds AvtoVAZ in scale. Judge, last year at the enterprise in the Turkish city of Bursa from the conveyor, 336 thousand cars with a rombe on the radiator, 602 thousand engines were released and 239 thousand gearboxes. AvtoVAZ, in turn, released 393 thousand cars of three brands.
From the conveyor of the plant in the Turkish city of Bursa, the Renault Clio-IV hatchbacks, Universals Clio Grand Tourer and the modification of Renault Megane in a sedan’s body, which has changed the famous Fluence. The Turkish enterprise exports cars in 60 countries of the world, including the European Union. Turkish enterprise motor division releases 4 types of Renault engines. These are gasoline K4M and H4M, and diesel K9K, B4D. All Renault design motors, so the Turkish state is not inserted into engine development.
Consequently, in the existing conditions, AvtoVAZ will be provided by the engines of the French partner. And the statement of the head of the Republic of Udmurtia on work on the new engine and state support for these works by and large does not have grounds.
Renault Group does not count on large-scale expansion of Lada brand to the European market. And if there are deliveries, the French autocontracean on a partner will provide motorities for domestic assembly plants and in Tolyatti and in Izhevsk.
Our channel has already written about the Localization of the engine HR16 (H4M) on the facilities in Togliatti. As you can see, its production is successfully developing, and this
Works also continue to adapt Motor VAZ-21129 for the model line produced on AvtoVAZ cars Renault.