AvtoVAZ Threatens Dealers with Contract Termination Over Inflated Lada Prices

AvtoVAZ has threatened dealers with the termination of contracts if an audit confirms the inflated prices of Lada vehicles. This was reported by forbes.ru.

The automaker has advised that the new version of the Lada Vesta should be sold for no more than 1.7 million rubles, yet some dealers have priced it above 2.1 million rubles, as uncovered by Autonews.

"AvtoVAZ has begun checking several auto dealers in Moscow following reports of price hikes for Lada branded vehicles, and if confirmed, could terminate dealer agreements," stated the automaker's press service.

"An operational audit has commenced concerning three dealers in Moscow—Avtogermes, Torgmash, and Tekhinkom—after the publication of a piece in a federal media outlet about the unjustified price increase of the new generation Lada Vesta," the press release read.

"If the audit confirms systematic violations of dealer contracts, which, among other things, require vehicles to be sold at suggested retail prices, penalties will be applied to the aforementioned dealers. This includes a significant reduction in the quotas for new vehicle supply or the termination of the dealer contract," emphasized AvtoVAZ.

Additionally, AvtoVAZ is set to increase vehicle prices for the second time within a year. As of June 10, deliveries of new Lada Vesta vehicles have ceased for companies owned by these dealers.