Cooperation between AvtoVAZ and FAW is at risk of breakdown

Experts warned of the risk of breakdown of cooperation between AvtoVAZ and FAW due to Western sanctions

The inclusion of the Russian concern AvtoVAZ in the US and EU sanctions list could threaten its cooperation with the FAW company. The assembly of Chinese cars under the Lada brand is under discussion. This is reported by the Gazeta.Ru edition, referring to car market experts.

Lada X-Cross 5

In June, AvtoVAZ started production of Lada X-Cross 5 crossovers (under this name is hidden FAW Bestune T77) in St. Petersburg. However, not a single car has been delivered to retail. 

Analysts believe that the problem lies in the sanctions imposed on the Russian concern. Under these conditions, it is difficult to organize the assembly of finished cars unlike the simple procurement of spare parts. 

According to expert Sergey Tsyganov, when the deal between AvtoVAZ and FAW was made, there were certain conditions, and a few months later they changed. There are a batch of Lada X-Cross 5 in stock, but the manufacturer does not know under which brand to sell them. And until this issue is resolved, it remains very sensitive for the company, Tsyganov summed up.

It was previously reported that KAMAZ accidentally showed a new model of Moskvich, which is similar to FAW Bestune NAT.

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