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GM Cancels Work On Russian-Market Chevrolet Niva Replacement

Back in 2015, General Motors made what’s now become characterized as a short-sighted move by pulling its Chevrolet and Opel brands out of Russia‘s mainstream vehicle segments. In doing so, GM surrendered one of the BRIC markets to the likes of Kia, Hyundai, Nissan and Renault, which have come to eat up the market share previously held by The General. And now, it’s taking another rather disappointing step by suspending work on a planned replacement to the Chevrolet Niva.

The Niva

The Niva is a legendary nameplate in Russia dating nearly five decades. More on that in just a bit.

The current Chevrolet Niva represents a very substantial update to that first-generation Lada Niva 4×4, which was fully developed by Russian automaker VAZ (since renamed to AvtoVAZ) in the 1970s.

Lada Niva circa 1994

The original Lada Niva 4×4 launched in 1977 (1994 model shown)

The Russian-built small SUV has true legendary off-road prowess and durability, capable of starting up in cold weathers and tackling the rugged tundra terrain.

The Chevrolet Niva also happens to be the last-remaining Russian-built vehicle with any GM involvement.

The Joint Venture

The Chevrolet Niva is the product of GM-AvtoVAZ – a joint venture between GM and AvtoVAZ at the latter’s factory in the Russian city of Togliatti, the country’s principal hub for auto development and production.

The partnership is the result of aligned business opportunities: at the turn of the century, GM was looking to establish itself in Russia, while AvtoVAZ needed some financial backing. GM-AvtoVAZ was created in 2001, and the original Lada Niva 4×4 was substantially updated to create the Chevrolet Niva on sale today.

Chevrolet Niva

The Chevrolet Niva was launched in 2002 by GM-AvtoVAZ joint venture

The joint venture was a rather straightforward relationship until French automaker Renault managed to shoehorn itself into AvtoVAZ and become its primary owner.

According to Nicolas Maure, current chairman of GM-AvtoVAZ and chairman of the Renault Group in the Eurasia region, Renault-owned AvtoVAZ is the financial partner and contract manufacturer for the Chevrolet Niva, while GM is responsible for the engineering.

The Niva Replacement

The current Chevrolet Niva was launched in 2002. A replacement was previewed at the 2014 Moscow auto show. After being awarded all kinds of awards for design, a launch was planned for 2016, but had an on-again, off-again nature. But now it has been axed completely.

“Works within the new-generation Niva project are suspended due to several objective reasons,” GM-AvtoVAZ said in a statement.

Those “objective reasons” were not listed nor explained.

Chevrolet Niva Concept 02

Chevrolet Niva Concept debuted in 2014

A Focus On The Current Model

Maure declined to comment why development of the next-gen model was cancelled, but did offer the following words: “The company is profitable so there’s no urgency to replace it.”

It would seem as if GM-AvtoVAZ will instead refocus on continuing to develop the existing model instead.

“We are constantly working on improving the quality and performance of the vehicle to keep customers’ interest in our product,” a spokeswoman for the automaker said.

2018 Chevrolet Niva LE Plus

The current, first-generation Chevrolet Niva was launched in 2002 (2018 model year shown)

GM’s Exit

As GM pulled out of Russia (and, subsequently, various other global markets including Europe, South Africa, Indonesia, and India), the Chevrolet Niva remained in Russia. The vehicle is sold at roughly 100 stand-alone dealerships around the country.

The Niva enjoys some popularity, accounting for 18,456 registrations in the first eight months of 2018, making it Russia’s 19th best-selling model during the time frame.

Long-Standing Niva Heritage

The Niva name carries significant levels of heritage and legacy in Russia, with the most similar example being the Jeep Wrangler in the United States.

2018 Lada 4x4 Urban Front Three Quarters

The original Lada 4×4 dates back to 1977 and has been updated over the decades it’s been in production. 2018 model shown.

2018 Lada 4x4 Urban Rear Three Quarters

The rear end of the original Lada 4×4, updated for 2018

Originally a product of Lada, a Russian auto brand created by AvtoVAZ, the Niva was launched in 1977 as the Lada Niva 4×4. It was the first mass-produced off-road vehicle to feature a unibody architecture and an independent front suspension with coil springs.

After the introduction of the Chevrolet Niva by the GM-AvtoVAZ joint venture, the original Lada Niva 4×4 – which is still in production – was rebranded to the Lada 4×4 in Russia, while carrying the Niva name in export markets.

Lada and AvtoVAZ are planning to develop a replacement for the 4×4, having recently released a concept car that previous the vehicle. Rumor has it that they would like to use the Niva name for that vehicle and to buy it back from the GM-AvtoVAZ joint venture.

Lada Niva 4x4 Concept Front Three Quarters

Lada 4×4 Concept previews next-gen Lada 4×4

Lada Niva 4x4 Concept Rear Three Quarters

Rumor has it that Lada would like the use the name Niva once again for the vehicle

“If there is an opportunity to buy it back, it would make sense. It still has a strong brand image, not only in Russia but also abroad. It’s a question of price,” Maure was quoted as saying in reference to Lada using the Niva name.

He also stated that the replacement for the original, 1977-era Niva would not continue using the 4×4 name, essentially confirming that there is a good chance that the Chevrolet Niva will be renamed in the near- to medium-term future.

Stay tuned to GM Authority for more on GM news and Chevrolet Niva news coverage.

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Comments

  1. Seems that this has become the norm for GM.
    No more a world player.

    Reply
  2. Another brilliant marketing move by the Genius management at GM. To just drop a nameplate with five decades of sales success is a bone head move even for GM. As is usual, GM has retreated from one of the largest vehicle markets in the world because they could not compete with the big guys. Pretty soon all GM will have left is 2nd place in pick-up truck sales in Oklahoma.

    Reply
  3. Stupid move by GM, letting the Koreans take over. Russia is a good market to grow, with big sales potential.

    Reply
  4. GM has left difficult markets. GM is a regional player and as such now needs an ambitious partner like PSA under Taveres. GM needs to buy a lot of stock and develop projects jointly.
    Chevrolet had already damaged itself in Europe and India so maybe Opel can do better?
    I must say no US brand will thrive in Russia with the sanctions. Russia was GMs only smart move.

    Reply
    1. Sanctions are really just an excuse. They are not impacting Hyundai, Kia, Renault, VW one bit.

      GM could have found ways to play in Russia, with or without sanctions. It simply chose not to because GM’s present management can’t seem to focus on more than one or two directional projects at once.

      I lived in Russia… Chevrolet and Opel are very well-respected there. Chevrolet perhaps more-so than Opel. The Niva is a different animal, since it has Russian roots and heritage… but even that project GM management managed to lose control of by letting Renault take over AvtoVAZ.

      Reply
      1. Alex, Putin and Russian media slam the US daily and I don’t see GM (or Ford) overcoming the geopolitical hit of Cold War 2.0 going so far as to ask Germany to reject Russian natural gas and the new pipeline.
        Chevrolet and Kia are in different positions: It’s the US, not S Korea, that organized a global sanctions regime intended to break the Russian economy until they admit to election meddling.
        It was the US and not France that began arming Ukraine so Opel was bound to take a bigger public opinion hit in 2014 than Renault.
        Russians have a wide variety of buying options and I simply don’t see them buying American considering the current hostilities.
        I do agree with you that GM is lazy quitting India not to mention the poor manner in which they ran Opel. With effort GM could still be in both markets.

        Reply
      2. GM cannot operate in Russia because of sanctions. GM vehicles are available in Russia but they are from Uzbekistan and are not sold under GM names.

        The other companies are not affected because their governments have not banned technological and IP agreements with Russia.

        Reply
  5. Russian demographics are among the worst in the world. Russia is one of few that is shrinking. Politically it is a mess, and more than likely it is pay to play with the Putin cronies. Wonder if in a couple years PSA will be caught for bribery??
    Would much rather GM spent energy on figuring out a good strategy in India, Malaysia, Indonesia etc… All growing markets with great demographics.

    Reply
    1. Don’t confuse demographics with politics, especially those propagated by the mainstream media, including CNN, Fox, USA Today, NY Times, Washington Post, etc.

      Some facts:

      1. Russia has very attractive demographics.

      2. Russia has an entire generation of young people (gen X and Y) who want cars and build their societal status/reputation on which cars they own (much like China). But unlike the Chinese of the same class, Russians actually like driving (as opposed to being chaffered around in the back seat).

      3. Russians are willing to shell out decent money for cars, especially those of a “brand name” (called BREND in Russian). Chevrolet could have capitalized on it with its new models, which are better than ever before.

      4. Russia has fuel aplenty that is also very affordable (no need to worry about hybrids/electrified models)

      5. Russia has good roads, with the vast majority of the road system in major cities that house the majority of the population having been rebuilt over the past decade (your “Putin cronies” must have done that with their own money, right?)

      So based on your politically-angled comment, it seems that you have an anti-Russia agenda… and haven’t taken things at face value.

      India? Malaysia? You’re talking about selling trikes with a roof for an ATP that translates to about $5,000 USD. That’s either very little profit, or no profit opportunity. Meanwhile, Russians would have gobbled up Chevy sedans and crossovers by the thousands… if only they were made available in the country.

      Reply
      1. Russia population is decreasing. Life expectancy is decreasing. Those are facts.
        Putin is now a dictator masked as a democratic leader, just like ussr days. Political opponents go to jail or are assassinated. The entire country is dependent on the price of energy. Not a great market compared to the Asian opportunities.
        Alex am dispointed you seem to be a Putin guy. His goal is old ussr restored. Nothing good will come of that

        Reply
        1. You seem to have one sided view. Go travel to Russia and talk to Russians and you will be surprised how much propaganda is happening on both sides. Except you are informed only on one sided propaganda.

          Reply
  6. The sanctions against Russia are unnecessary, but just political tokens to appease neo-cons in government. Trump was elected on working with Russia, not getting his election mandate hijacked by the #deepstate.

    Reply
  7. The sanctions are against Putin and his Russian Mobsters, not against the people. Trump is already in bed with the Russian Mob because they have financed his businesses for years.

    Reply
    1. is that what they say on CNN?

      Reply
    2. This ongoing rumor mongering trying to paint Putin in that light is fascinating. Somehow, for some reason, so many really want this to be the case, and will go to great lengths to try to provide evidence to this.

      I’m not on board in assuming the associations you are describing. But even if we were to assume (key word – assume) this to be the case for the basis of this particular conversation, why is it any of the U.S. business?

      I’m also curious about how you feel about the United States openly being behind and sponsoring coups in El Salvador, Grenada, Panama, Nicaragua, Yugoslavia.

      Reply
      1. A quick look at where those countries are should answer your question.
        What coup in yugoslavia?

        Reply
      2. Coup in Yugoslavia?

        Reply
  8. Gm isn’t retreating from Russia at all. They are trying to send and as a lux market option, much as German imports are considered here. Russians like American SUV,s and sports cars. Just like Saudis prefer suburbans to rolls Royces. They want to change the image and pourpose. They want a legacy of prestige and quality not the second rate fellow. They can source cheaper cars from the gm Asia if it made sense and maybe it Will soon. I’m sure many Russians would love to get their hands on a traverse. I don’t know why they don’t offer the blazer in Russia. The global blazer that is to say.

    Reply
    1. Well, yes – Russians will also gobble up any Chevy vehicle they can get their hands on… except for the first-generation Aveo and Matiz – which damaged the brand’s reputation in that market somewhat.

      Had Chevy been offering its mainstream vehicle lineup in Russia – from the new Spark to the Impala and from the Trax to the Traverse, it would sell very well.

      Whether or not they’re retreating from Russia is a matter of perspective. The availability of their current offerings is so sparse that the potential customers simply give up and go to Toyota SUVs (HiLux/Prado) or the Nissan Patrol.

      Reply

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