Western Sanctions Crush Russian Automaker

At the height of the Cold War in the 1960s, Soviet officials joined with Italian automaker Fiat to form a state-owned Russian car company.

Over the decades, the brand that came to be known as Lada became a symbol for Russia’s industrial self-sufficiency from its massive factory in the southwest — and its accompanying domestic supply chain.

Today, it’s a much different world, and if it was already clear, recent events in eastern Europe have confirmed that the days of isolated, self-contained supply chains for heavy industry — particularly the auto sector — are over.

The Wall Street Journal, citing people familiar with the matter, reported that Lada shut down its factories and placed thousands of workers on leave last week — the result of economic sanctions imposed by Western nations following Russia’s invasion of Ukraine.