A case for the return of Lada.

"not for canada - australian in disguise" (for-canada)
10/19/2016 at 15:07 • Filed to: None

Lada withdrew from the Canadian market in 1997, due to increased competition from Korean automakers, and a completely outdated product base. Now things are different. Lada actually makes kinda modern cars, for the most part, and the Koreans have moved upmarket, leaving a gap for budget brands. I think someone like Lada could move right into that market.

One of the ways that this could be successful is if they kept their model range small and simple, four models at most. You could have the Kalina hatch and Granta (sedan version of the Kalina), the X-Ray subcompact CUV;

And for the shits and giggles, the Niva.

Another former eastern bloc carmaker that could make good inroads is Dacia, who, like Lada, have sold cars in Canada before. Unlike Lada though, they sold about 3 cars and nobody remembers that they actually sold cars here. Which is a good thing, no bad reputation to shake off, unlike Lada.

DISCUSSION (17)

CB > not for canada - australian in disguise
10/19/2016 at 15:12

The only thing is, with them entering as an inexpensive brand, how cost prohibitive would it be to get them to meet North American regulations? As well as the fact that people might be more willing to buy a used car from a more known brand than a cheap car from a brand with negative images associated with it.

not for canada - australian in disguise > CB
10/19/2016 at 15:17

That’s a good point, although if Lada were able to get away with selling 1970s designs in the late 90s up here, I think they’d be able to bodge a bit and get at least their more modern offerings fit to regulations.

LongbowMkII > not for canada - australian in disguise
10/19/2016 at 15:17

How much cheaper can it be than a Nissan Micra?

Klaus Schmoll > not for canada - australian in disguise
10/19/2016 at 15:19

Spoiler alert: While they look modern, they are still terribly outdated cars. Think Korean cars from the early 90s, TODAY. They sell try to sell them in Germany, but even in Eastern Germany, the former GDR, where there’s a portion of the population that still has fond memories of the Russians and Ladas nobody is biting. The handling is reported to be somewhere between terrible and downright dangerous. The reputable German newspaper Süddeutsche Zeitung abruptly ended a road test of a Granta last year (they wanted to take it on a small road trip) stating that they didn’t feel safe on the autobahn.

not for canada - australian in disguise > LongbowMkII
10/19/2016 at 15:20

The Kalina hatch starts at about $7600 CAD in Russia (361,300 Rubles). That makes it several thousand dollars cheaper than the Micra, which starts at $9988.

Sam > not for canada - australian in disguise
10/19/2016 at 15:36

But that’s at Russian safety and comfort levels. The Micra is probably twice as comfortable and maybe four times as safe. Thus, a Lada will cost pretty much the same.

Wacko > Sam
10/19/2016 at 16:21

that and for close to the same price you are stuck with a lada, when you could have a nissan.

AMC/Renauledge > not for canada - australian in disguise
10/19/2016 at 16:33

I’d be more interested in Dacias than Ladas. At least the Dacias are built on well-engineered, if old, Renault platforms. And my money would be less likely to wind up supporting a corruption-riddled economy.

It’s not like Romania is a shining star of perfection, but they’re much closer to it than Russia is.

Sam > Wacko
10/19/2016 at 16:48

A crappy Nissan. But a Nissan.

Wacko > Sam
10/19/2016 at 16:56

i think a crappy nissan is better than a good lada.

RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars > not for canada - australian in disguise
10/19/2016 at 19:41

The Xray and Vesta have very eyecatching designs to me, actually - both designed by Steve Mattin, of Volvo and Mercedes fame.

Vesta:

Xray:

gogmorgo - rowing gears in a Grand Cherokee > not for canada - australian in disguise
10/19/2016 at 19:45

Except they stopped selling them in the late ‘90's because no one was actually buying them...

gogmorgo - rowing gears in a Grand Cherokee > not for canada - australian in disguise
10/19/2016 at 19:58

I don’t know if it would work out. It’s a pretty big risk. There are very few people I’ve met with fond memories of Lada’s time in Canada. I suspect they could be popular with younger audiences who don’t remember them (cheap new car! Was it Lehto who said that poor people buy new cars?) but that’s a pretty big chance to take. As was stated in another comment, they haven’t seen much success at all in other export markets, with the exception of the Niva. And I’m not convinced that you could bring the Niva up to modern standards without just about doubling the cost. Now, the 4x4 Urban might see some success, as pretty well the only bare-bones AWD crossover for under $20,000, but not having an automatic will likely alienate a lot of buyers, despite how “cute” it looks. And as far as cheap utilitarian vehicles go, you can get a lot of dependability very cheaply out of an old truck.

I think you’d end up selling to a very limited crowd of enthusiasts who haven’t had to live with a Niva. Even though I like to think that my Niva is fairly reliable, I also have to point out that I haven’t actually driven it more than a super sketchy no-brakes run around the block (my block contains actual four-lane divided highway and four stop signs...) since late May or early June.

ranwhenparked > not for canada - australian in disguise
10/19/2016 at 21:10

Dacia could always come in under the Nissan brand. They already get sold as Renaults in some markets where Dacia themselves aren’t established.

Nauraushaun > not for canada - australian in disguise
10/20/2016 at 07:24

Isn’t the sub-Korea role already filled by the Chinese? They’re doing it in a big way, and my impression is they’ve come a long way in the last 10 years.

Unlike the Russians who have covered the same distance in 40 years.

TheHondaBro > not for canada - australian in disguise
10/23/2016 at 00:26

Kinja'd!!!

not for canada - australian in disguise > TheHondaBro
10/23/2016 at 00:33