RIA Novosti reported that Russia largest auto-maker AvtoVAZ is planning to boost the popularity of its Lada cars by setting up production of toy cars carrying the name of the brand.

The official said “The Company has signed contracts with a number of developers and makers of toy cars for the use of the Lada trademark to improve the popularity of its cars among the younger generation.”

He denied speculations that the move was meant to improve the financial performance of the company as AvtoVAZ has a history of being a loss-making enterprise and has posted huge debts until recently.

It has been able to boost sales with the help of the state backed 'cash-for-clunkers program which ended last year.

AvtoVAZ saw 2011 net profit jump 86.2%YoY to RUB 6.7 billion to IFRS.

Source - RIA Novosti

(www.steelguru.com)