First half of the year 2001 was successful for AVTOVAZ. 375, 927 cars were produced, which represented 101.7% of planned output. In relation to the same period in the year 2000, production volume has increased over 9 %. The production of "Lada-110"- family (including "Lada-111" and "Lada-112") was significantly increased up to 110, 615 cars for six months.
       Rapid growth of production was also kept in the Pilot Production Division (General Department of Development of AVTOVAZ), where 4,729 cars, including long-base five-door "Niva" and mini-van "Lada-2120", were manufactured.
       Assembly plants, which assembly "Lada" cars abroad, have also shown good results for the half of the year. The Ukrainian plant has produced 1,946 cars, Ecuador plant workers have assembled 1,540 "Niva" cars with electronic fuel injection and ignition system.
       These figures have been announced recently by the President - Chief Executive of AVTOVAZ Incorporated Alexey Nikolaev at a press -conference. The major event, which Alexei Nikolaev emphasized, was signing the General Agreement with "General Motors" and European Bank of Reconstruction and Development. Joint Venture "GM-AVTOVAZ" will produce new "Niva", an off-road vehicle, which will have a new trade mark "Chevy-Niva". This Russian-American alliance can be viewed as a real proof of talent of VAZ designers and engineers. For the first time an international automotive company invests money in production of the vehicle, developed by Russian specialists. Board of Directors of the Joint Venture will consist of 3 GM representatives, 3 AVTOVAZ representatives and 1 EBRD representative. Alexei Nikolaev has announced three names of AVTOVAZ members of the Board. They are Vladimir Kadannikov, Chairman of the Board of Directors of AVTOVAZ Inc., Nikolai Golovko, Development Director of AVTOVAZ Inc. and Yuri Zektser, General Director of AVVA Inc. (an AVTOVAZ shareholder). The staff, including workers and managers, amounts to 1,200 people. Recruitment and training of personnel will be carried out by AVTOVAZ. "Chevy-Niva" cars will be distributed through the GM distribution network abroad. AVTOVAZ network will also be used for the sale of "Chevy-Niva" models on the domestic market.
       Alexei Nikolaev touched upon the matter of relations with the Government. On 6 Juny 2001 the President of Russia Vladimir Putin called a meeting in Kremlin in order to discuss the Development Program of domestic automotive industry. Vladimir Putin and the Russian Government are determined to provide great support to the local producers. The first results can be already seen - now AVTOVAZ has the possibility to issue an additional number of shares, but only in the case, if a potential investor will invest money in an AVTOVAZ long-term project, for example, "Kalina" family.
        The terms for restructured tax payments will be postponed to give AVTOVAZ a chance to concentrate its efforts and finance on new models. "Kalina" family, including sedan "Lada-118", hatchback "Lada-119" and estate car "Lada-117" is viewed as the most prospective car family. The project costs 850 mln. dollars. AVTOVAZ is ready to invest 350 mln. dollars of its own financial resources. The remaining 500 mln. dollars are required from the investors.
       The long-term plans of AVTOVAZ also include a project for development and production of new engine types, which costs 1,3 billions dollars. This project will be carried out from 2005 up to 2010. The next step is development of other classes of vehicles - A, B, D, based on the new engines. AVTOVAZ is going to involve other Russian car producers in its development program.