Lada Outpaces VW in Germany 20 Years After Fall of Berlin Wall - by Chris Reiter
Lada, once a symbol of the dull, utilitarian Soviet auto industry, has became the fastest-growing car brand in Germany 20 years after the fall of the Berlin Wall, boosted by the German government’s consumer incentives. Chancellor Angela Merkel’s program of cash rebates for replacing old gas-guzzlers with new fuel-efficient cars has secured record sales in Europe’s biggest economy for Lada’s manufacturer, OAO AvtoVAZ, Bernd Haack, a spokesman, said today by telephone.
Car sales in Russia have tumbled 51 percent in the first eight months of 2009, while in Germany they’ve jumped 26 percent as the government spent 5 billion euros ($7.3 billion) on the incentives for car buyers amid the global recession. AvtoVAZ may cut 27,600 jobs as it slashes output to 500,000 vehicles this year from 920,000 a year ago.
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