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The Journal.

A Russian Car Maker Falls Back Into Soviet-Era Isolation

The Journal.

The Wall Street Journal

Business News, Daily News, News

4.25.8K Ratings

🗓️ 11 March 2022

⏱️ 17 minutes

🧾️ Download transcript

Summary

This week, production of Lada cars, the icons of Russia’s auto industry, ground to a halt as Western sanctions cut off auto parts and supplies. WSJ's Nick Kostov tells the story of the famous car maker and explains why it offers a glimpse into the evolution of the Russian economy. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

There's one brand of car that's come to define the automotive industry in Russia.

0:10.2

It's called Lada.

0:12.8

Lada came out in the 1970s during the Cold War when the Soviet Union wouldn't allow foreign

0:17.6

companies, including car manufacturers, into the country.

0:21.6

It was basically the only car that had 80% of the market during Soviet times.

0:26.1

What's their colleague Nick Kostov in the USSR, that is what everybody drove.

0:30.3

You couldn't get everything, but you could get a vehicle.

0:33.4

And if you did get a vehicle, that vehicle tended to be a Lada.

0:44.5

Even after the Cold War, Lada remained an important car in Russia.

0:48.0

It's the biggest homegrown brand.

0:50.1

It's a symbol of national pride for Russians and for President Vladimir Putin.

0:55.5

He's been photographed in the Lada, like a boxy Lada, with like kind of military print

1:02.0

and said to customers, look, you can buy this Lada like me.

1:06.6

He's even appeared on state TV, test driving new models.

1:09.9

Russian Prime Minister Vladimir Putin is behind the wheel.

1:17.4

But this week, Lada was forced to halt production.

1:20.5

Due to the war in Ukraine, sanctions against Russia are choking off supply chains.

1:25.3

The Soviet era car brand could be forced back into its Soviet era ways.

1:33.6

Welcome to the journal, our show about money, business and power.

1:37.5

I'm Ryan Knutson.

1:39.1

It's Friday, March 11th.

1:46.4

Coming up on the show, the story of Russia's iconic car brand, and what it says about

...

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