Russia’s biggest carmaker Lada shuts up shop as Western sanctions bite

Factories have closed and employees have been sent home, as the Soviet-era marque struggles to source “parts and supplies” from Europe. 

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Lada – Russia’s largest car maker – has been forced to close its factory doors for an unspecified period, as Western economic sanctions render continued production untenable. 

According to multiple major news outlets – including the BBC and Wall Street Journal – the budget marque can no longer supply the “parts and supplies” it needs from the rest of Europe. 

Several thousand employees have reportedly been placed on leave, and all production facilitates have been temporarily shut down. 

Drive has contacted Lada for comment, and this story will be updated if more information becomes available. 

Throughout 2021, the marque sold 350,714 vehicles in Russia – representing approximately 21 per cent of the nation’s new car market. 

This makes it the most successful manufacturer in its home market, and one of the most domestically-represented car brands in the world.

Founded in 1973, Lada was a symbol of economic independence and security in the Soviet Union throughout the later stages of the 20th century. 

However, the manufacturer – which is now owned by the Renault Group – today sources more than 20 per cent of its parts from overseas suppliers. 

Following the invasion of Ukraine late last month, stock in the French automotive giant fell nearly 30 per cent. 

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