TOGLIATTI - In a surprise move, Vladimir Kadannikov, the stone-faced chairman of the board of AvtoVAZ, announced his resignation.
AvtoVAZ manufactures about 700,000 complete cars per year with a list of offerings including the 1960s Fiat 124-derived "classic" lineup, which is still the most popular new car on the Russian market. Vladimir Kadannikov became head of the car manufacturer in the late 1980s. During his tenure the company experienced many ups and downs, including alleged Mafia connections and, lately, increased competition from foreign brands.
Officially, Kadannikov resigned because he had reached retirement age, but according to Russian business daily Kommersant, the decision was probably influenced by SOK, Russia's biggest component manufacturer and - through its directly controlled subsidiaries - also the country's second biggest automobile producer. It seems SOK, which recently teamed up with Kia, is slowly increasing its ownership in AvtoVAZ and this has eroded Kadannikov's influence.
What this means to you: A car company that you couldn't care less about is making a major change in leadership so that someday you'll know who they are. Maybe.
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