Automotive industry in the Soviet Union

The automotive industry in the Soviet Union spanned the history of the state from 1929 to 1991. It started with the establishment of large car manufacturing plants and reorganisation of the AMO Factory in Moscow in the late 1920s–early 1930s, during the first five-year plan, and continued until the Soviet Union's dissolution in 1991. Before its disintegration, the Soviet Union produced 2.1-2.3 million units per year of all types, and was the sixth (previously fifth) largest automotive producer, ranking ninth place in cars, third in trucks, and first in buses.

History

AMO-F-15 on a Soviet stamp
NAMI-I

Early Soviet period

After the 1917 October Revolution, Russo-Balt was nationalised on August 15, 1918, and renamed to Prombron by the new leadership. It continued the production of Russo-Balt cars and launched a new model on October 8, 1922, while AMO built FIAT 15 Ter trucks under licence and released a more modern FIAT-derived truck developed by a team of AMO designers, the AMO-F-15. About 6,000–6,500 F-15s were built in the years 1924–1931.[1][2] In 1927, engineers from the Scientific Automobile & Motor Institute (NAMI) created the first original Soviet car NAMI-I, which was produced in small numbers by the Spartak State Automobile Factory in Moscow, between 1927 and 1931.[3] In 1929, due to a rapidly growing demand for automobiles and in cooperation with its trade partner, the Ford Motor Company, the Supreme Soviet of the National Economy established GAZ.[4][5] A year later, a second automobile plant was founded in Moscow, which would become a major Soviet car maker after World War II and earn nationwide fame under the name Moskvitch. However, due to specific government aims and economic hardships of that time, cars were only a small share of all vehicles produced in the early years of Soviet production.

Postwar period

At the beginning of the 1960s, when MZMA, GAZ and ZAZ were offering a variety of cars and the popularity of having a personal automobile in the Soviet Union was on the rise, the Soviet government opted to build an even larger car manufacturing plant that would produce a people's car and help to meet the demand for personal transport.[6] For reasons of cost-efficiency, it was decided to sign a licence agreement with a foreign company and produce the car on the basis of an existing, modern model. Several options were considered, including Volkswagen, Ford, Peugeot, Renault and FIAT. The Fiat 124 was chosen because of its simple and sturdy design, being easy to manufacture and repair. The plant was built in just 4 years (1966–1970) in the small town of Stavropol Volzhsky, which later grew to a population of more than half a million and was renamed Togliatti to commemorate Palmiro Togliatti.[6][7] At the same time, the Izhmash car plant was established in the city of Izhevsk as part of the Izhevsk Mechanical Plant, with the initiative coming from the Minister of Defence[8] and in order to increase the overall production of cars in the Soviet Union. It produced Moskvitchs and Moskvitch-based kombi hatchbacks. KaMAZ, Europe's largest heavy truck plant, was built in Naberezhnye Chelny, while GAZ, ZIL, UralAZ, KrAZ, MAZ, BelAZ, and plants continued to produce other types of trucks.

By the early 1980s, Soviet automobile industry consisted of several main plants, which produced vehicles for various market segments.

The bulk of the automotive industry of the Soviet Union, with annual production approaching 1.8 million units, was located in Russian SFSR. Ukrainian SSR was second, at more than 200,000 units per year, Byelorussian SSR was third at 40,000. Other Soviet republics (SSRs) did not have significant automotive industries. Only the first two republics produced all types of automobiles.

With the exception of ZAZ and LuAZ, which were located in the Ukrainian SSR, all the aforementioned companies were located in the RSFSR. Besides the RSFSR, some truck plants were established in Ukrainian, Byelorussian, Georgian, Armenian, and Kyrghizian SSRs while buses were produced in the Ukrainian, Latvian, Lithuanian, and Tajik republics.

Domestic car production satisfied only 45% of the domestic demand; nevertheless, no import of cars was permitted.[9] There were queues for the purchase of cars and many domestic buyers often had to wait years for a new car. In the 1970s, passenger cars made by VAZ (Lada) and GAZ (Volga) were the most in demand. Volgas were the most prestigious vehicles sold to private buyers, although up to 60% of the production was reserved for state and party institutions. Always popular and available for sale were Moskvitch and Zaporozhets cars, as well as compact four-wheel-drive LuAZ vehicles. All-terrain cars made by UAZ were not available privately, but could be bought decommissioned. Limousine brands Chaika (GAZ factory) and ZIL were not available for the general public. Prior to 1988, private buyers were also not allowed to buy commercial vehicles like minibuses, vans, trucks or buses for personal use. Soviet industry exported 300,000-400,000 cars annually, mainly to Soviet Union satellite countries, but also to Northern America, Central and Western Europe, and Latin America. There were substantial numbers of highway trucks (Volvo, MAN from capitalist countries; LIAZ, Csepel and IFA from socialist countries) in some quantities, construction trucks (Magirus-Deutz, Tatra), delivery trucks (Robur and Avia) and urban, intercity and tourist buses (Ikarus, Karosa) imported as well.

Post-1991

After the dissolution of the Soviet Union in December 1991, automakers of the newly formed Commonwealth of Independent States were integrated into a market economy and immediately hit by a crisis due to the loss of financial support, economic turmoil, criminal activities[10][11][12] and stiffer competition in the domestic market during the 1990s. Some of them, like AvtoVAZ, turned to cooperation with other companies (such as GM-AvtoVAZ) in order to obtain substantial capital investment and overcome the crisis.[13] Few others, like AZLK, became dormant, whereas ZAZ transformed itself into a new company, UkrAVTO.

Soviet automotive manufacturers

Historical production by year
Year Production of
vehicles total		 Production of
cars
1940 145,400 5,500
1945 74,700 5,000
1947 133,000 9,600
1950 362,900 64,600
1955 445,300 107,800
1958 511,100 122,200
1960 523,600 138,800
1965 616,300 201,200
1970 916,000 344,300
1975 1,963,900 1,201,200
1980 2,199,000 1,327,000
1985 2,247,500 1,332,300
1990 2,039,600 1,260,200

Russian Soviet Federative Socialist Republic

Moskvitch-2141 ALEKO

Ukraine

ZAZ-965/965А Zaporozhets

Byelorussia

BelAZ-548A

Georgia

Azerbaijan

Lithuania

Latvia

Kirghizia

Tajikistan

Armenia

Estonia

See also

References

  1. ↑ (in Russian) "The AMO, known and unknown".
  2. ↑ (in Russian) "Oldtimer picture gallery. The AMO-F-15".
  3. ↑ Kelly, (2009) p. 78-79
  4. ↑ "The Ford Motor Company in the Soviet Union in the 1920s-1930s" (PDF).
  5. ↑ "Soviet Fordism in Practice – Yale University" (PDF).
  6. 1 2 "AVTOVAZ Joint Stock Company History".
  7. ↑ (in Russian) "The history of Togliatti".
  8. ↑ (in Russian) "The history of the Russian automotive industry: IzhAvto". Za Rulem.
  9. ↑ Begley, Jason; Collis, Clive; Morris, David. "THE RUSSIAN AUTOMOTIVE INDUSTRY AND FOREIGN DIRECT INVESTMENT" (PDF). Applied Research Centre in Sustainable Regeneration.
  10. ↑ Ireland A. D., Hoskisson R., Hitt M. Understanding Business Strategy: Concepts and Cases. Cengage Learning. 2005. P. 145
  11. ↑ Glazunov M. Business in Post-Communist Russia: Privatisation and the Limits of Transformation. Routledge. 2013. Pp. 80-82
  12. ↑ O’Neal M. Democracy, Civic Culture and Small Business in Russia's Regions: Social Processes in Comparative Historical Perspective. Routledge. 2015. P. 81
  13. ↑ "AVTOVAZ Joint Stock Company History".
  14. ↑ "The Internationalization of the Automobile Industry and Its Effects on the U.S. Automobile Industry: Report on Investigation No. 332-188 Under Section 332 of the Tariff Act of 1930".
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