In 2011 AVTOVAZ will reduce its own dealer network more than twice

AVTOVAZ� management decided to accelerate rates for reduction of its own dealer network which next year will total approximately 50 companies against the present 116. The vice-president has told Artem Fedosov, sales and marketing president of AVTOVAZ told the newspaper "Vedomosti" about this and remarked that that they will provide about 15% of all sales of the car factory. Before the crisis "Lada-service" provided AVTOVAZ with 25% of sales.
According to Mr. Fedosov, first of all the company will get rid of dealers burdened with big debts, who have old outlets etc. Unpromising marketing "daughters" will be sold or liquidated in the course of bankruptcy.
In the business plan of the factory till 2020, simultaneously the quantity of independent dealers should grow - from 316 at the beginning of this year to approximately 425 in 10 years. AVTOVAZ needs its own dealers for testing of new techniques of sales, strengthening of the brand and reception of additional 1.5 billion roubles of profit, the document said.