Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
July 29, 2014 01:00 AM

AvtoVAZ CEO Andersson aims to restore pride to Lada

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bloomberg
    Andersson: 'We have to steel ourselves for intense competition from Chinese companies.'

    Bo Andersson, a former top purchasing manager at General Motors, is the first non-Russian CEO of AvtoVAZ, which is now controlled by Renault-Nissan. Andersson, a Swedish national, is tasked with turning around AvtoVAZ's struggling Lada unit, whose sales have been hit hard by competition from Western brands. He spoke with Automobilwoche, a sister publication of Automotive News Europe.

    How are tensions between Russia and the Ukraine affecting Lada.

    Russia is our biggest market, not the Ukraine. Political instability doesn’t necessarily make our business any easier. On the other hand, a certain nationalism benefits us at Lada. And the weaker ruble helps us since Lada sources three quarters of its components from this currency zone.

    How important are Germany and the rest of Europe to Lada’s business?

    Germany is a very interesting market, but we do not have the right products for it yet. Our exports are now focused on Kazakhstan, the Ukraine, Azerbaijan and Belarus. We are also quite strong in Egypt and Tunisia, along with Peru and Nicaragua. We want to grow strongly in Europe with the new models I just mentioned.

    You want to boost Lada's market share in Russia to 20 percent by 2016 – how do you expect to succeed in a difficult economic environment?

    Last year, our market share was 16 percent, and for the first half we are already at more than 17 percent. We are working on three core themes for future growth. First, we are improving the quality of our current models. Second, we will soon bringing out interesting derivatives of these models, such as a crossover version of the Kalina. And we are introducing three entirely new cars starting in September 2015.

    What new cars are coming?

    We are planning B-segment sedan: The new Vesta is Lada’s own development. It will meet European safety standards, will be capable of meeting the Euro 6 standards, and have a base price of 8,000 euros. We will also have the X-Ray SUV and the all-wheel-drive Lada X-Ray crossover. Both are based on Renault platforms and will offer impressively low fuel consumption, among other things.

    Does Renault-Nissan want to increase its share in AvtoVAZ?

    Renault-Nissan and the Russian government already own 74.51 percent of AvtoVAZ, in the form of the Netherlands-based Rostec Auto BV alliance. As far as anything else goes, the future will tell.

    How will you increase profit margin to 6 percent in two years?

    We unfortunately lost money over the last two years. That is why we are working hard on our fixed, material and administrative costs, which are too high. Our production volume is still too low. In 2013, we sold 530,000 cars worldwide. And Lada can still configure its pricing even more attractively in comparison with the competition.

    Are you satisfied with Russian suppliers and their local value creation?

    Yes and no. On one hand, Russia now has many high-performing suppliers. On the other hand, AvtoVAZ is too dependent on some monopolies. That is why I want to create more transparency and competition in supplier relations. For example, we could economically import certain auto parts from Turkey in the future.

    What other automakers does Lada consider to be its benchmarks?

    We can learn tried-and-tested principles of automobile production from General Motors. During my time at the GAZ Group, Volkswagen showed me that the Germans lead in engineering, in body stiffness, for example. Renault can help us in the engine and drivetrain area. In turn, Nissan stands for high quality. We are paying extremely close attention to the best concepts in each case.

    What are your first successes?

    We have focused on production during my first five months at Lada. We were able to reduce the hierarchical levels from nine to five. We have improved productivity by 25 percent and have increased our quality by 20 percent. In Togliatti, we build 2,400 cars a day – the figure should reach 3,000 by year’s end.

    How important are alternative powertrains?

    Lada can already point to successes in electric vehicles, and if we needed more from the technology – Nissan is the world’s leading company in this field. CNG and LPG engines are becoming increasingly important in the Russian market. Lada is very deeply involved with gas powertrains.

    Does Lada need to develop in the growth markets of Brazil, India and China?

    Not in the near future. We would rather focus on 10 core markets where we can be competitive. Our products are the key. We need to be somewhat stronger in Sweden, Norway and Finland, where the climatic conditions resemble those in Russian and many roads require four-wheel drive.

    The Lada X-Ray concept robust but simple body style previews the brand's new design.

    In two years, which automakers will be among Lada’s toughest competitors?

    I am convinced that we have to steel ourselves for intense competition from Chinese companies. Geely is already quite successful in Russia. Lifan as well. And we will naturally continue to compete aggressively against VW and GM.

    What projects would you like to advance in the next six months and what is looming in fiscal year 2015?

    First of all, I would like to bring pride back to Lada. We have many good employees who want to enjoy greater success in the auto business. As I mentioned, we are aiming for a 20 percent market share, a 6 percent profit margin and a positive cash flow in 2016. We will continue to hone our cost structures. And in the future, with all our body derivatives and powertrains, we will present something new every three months. The models do not need to represent large volumes. But they will be visually and technologically appealing. The Lada Kalina Cross, which is being launched in September, is one example. We expect people to say: 'Yes, it’s only a Lada.' But they should be very proud of it at the same time.

    RECOMMENDED FOR YOU
    2023 Eurostar winner Mark Zhou of Nio
    Recommended for You
    Mark Zhou Nio 2023 Eurostar
    2023 Eurostar winner Mark Zhou of Nio
    Stephan Durach BMW 2023 Eurostar
    2023 Eurostar winner Stephan Durach of BMW
    Mitja Borkert Lamborghini 2023 Eurostar
    2023 Eurostar winner Mitja Borkert of Lamborghini
    Main Image Cars
    Sponsored Content: Driving the future of mobility with SenseAuto: The AGI Power Behind the Wheels
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us