Russia’s invasion of Ukraine crippled Renault’s finances, and has reportedly now forced a sell-off of Lada for a nominal sum.
Renault’s 68 per cent share in Lada’s parent company AvtoVAZ will reportedly be offloaded for just ₽1 (1 ruble) – equal to approximately $AU0.71.
The branding, factories, and business infrastructure will be acquired by the state-run Russian Science Institute based in Moscow.
While the car makers and French government are yet to comment to the deal, Russian officials have indicated it is set to be finalised.
Last year Renault built approximalty 20 percent of all new cars sold in Russia, across both its Renault and Lada marques.
Lada currently builds two sedans – the Granta and Vesta (shown below) – alongside Xray, Largus, and Niva SUVs.
It’s so far unclear how the line-up will be affected by Lada’s separation with one of Europe’s largest car makers.
Lada was founded in 1973, and underwent various restructures following the collapse of the Soviet Union.
Renault bought into the company in 2008, and increased its stake to 68 per cent over the next five years.
The marque has attempted to break into the Australia market on several occasions, with the last Lada sold locally in 1998.
Models sold locally include the Niva (1989-1998), Cevaro (1990-1996), Volante (1994-1995), Samara (1988-1990), Sable (1994-1995), and Bizivan (1989-1991).
A retuned performance variant of the Samara was also briefly offered by Peter Brock’s Special Vehicles company in 1989.