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12 March 2015

LADA Vesta and LADA XRAY will not be equipped with engines of the Renault company

 LADA Vesta and LADA XRAY will not be equipped with engines of the Renault company

It was stated by Bo Andersson, the president of AvtoVAZ.

According to preliminary data, several motors of AvtoVAZ production with capacity from 87 to 114  horsepower will be offered for the "Vesta". LADA XRAY will get a 1.8-liter engine produces 122 horsepower and 172 Nm of torque. Prospective buyers of both models will be able to choose a mechanical gearshift or robotized transmission, by which sedan and liftback LADA Granta are already  equipped.

The renouncement of AvtoVAZ from using Renault engines for its new products is dictated by the overall  situation in the automotive market. Decline in sales by 26% in January 2015 forced the leadership of the  AvtoVAZ to focus on reducing production costs to produce cars.

According to Bo Andersson, the main goal is to decrease the level of spending to 17 thousand rubles per  unit on the line B0, and down to 14 thousand rubles on the Kalina / Granta assembly line. Last year, the  production costs to produce one car at the plant averaged 42 thousand rubles. This year, the president of AvtoVAZ plans to increase production up to 670,000 cars a year and boost sales by 20%.

by Ivan Muzalevskiy, 3rd year student
Togliatti Academy of Management

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