AvtoVAZ and FAW Cooperation Under Threat of Disruption

Experts Warn of Potential Disruption to AvtoVAZ and FAW Cooperation Due to Western Sanctions

The inclusion of the Russian concern "AvtoVAZ" on the sanctions list of the United States and the European Union may threaten its cooperation with FAW. This concerns the assembly of Chinese cars under the Lada badge. This is according to Gazeta.Ru, citing automotive market experts.

Lada X-Cross 5

In June, AvtoVAZ launched the 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 sold at retail.

Analysts believe that the problem lies in the sanctions imposed on the Russian concern. In these conditions, it is difficult to organize the assembly of finished cars, as opposed to simply purchasing components.

According to expert Sergei Tsyganov, when the deal between AvtoVAZ and FAW was concluded, there were certain conditions, but after a few months they changed. There is a batch of Lada X-Cross 5 available, but the manufacturer does not know under what brand to sell them. And until this issue is resolved, it remains very sensitive for the company, Tsyganov concluded.

Earlier it was reported that KamAZ accidentally showed a new model of "Moskvich", which looks like FAW Bestune NAT.