AvtoVAZ to Scale Down Its Dealer Network

After reviewing its dealer network, AvtoVAZ decided to terminate some of its dealerships. According to the company management, some dealers will be weeded out due to unprofitability, not having proper amount of clients and providing low quality service. AvtoVAZ subsidiary Lada-Service is currently running over 70 Lada dealerships in the country, mainly in European Russia.

However, AvtoVAZ is continuing to study the need of opening additional dealerships at cities with a population of over 50 thousand.

On October 1st, 2010 AvtoVAZ introduced a bonus system for dealers in order to stimulate sales. Dealers get extra money for fulfilling their sales plan and for good customer service.