B11-Sunday News, May 4, 1980 Rugged little Russian weathering storm TORONTO (UPC) - Tough enough to endure a Russian winter and weather an imternational diplomatic storm, the Soviet-built Ladas have been flowing into the thirsty Canadian market as fast as vodka on May Day. “The biggest selling point is value for money.” said John Wright, national marketing director of Canadian-owned Lada Cars of Canada Inc. “They’re getting an awful lot of car for $4,288." The boxy little four-door - which comes with tachometer, reclining bucket seats and velour upholstery as standard features - was designed by Fiat but modified by the Soviets to endure their harsh winters. “The Russians quickly Auto talks set TORONTO (UPC) - Negotiations aimed at im- proving Canada's position under the United States- Canada Auto Pact will begin this summer, federal In- dustry Minister Herb Gray said Thursday. “We have... informed the United States government and received their agreement to enter into formal consultations about the Auto Pact which will be aimed at improving its operations from Canada’s point of view,” he said. Canada last year had a $3 billion deficit in its automobile trade with the US. Gray told reporters after a speech to 300 members of the prestigiogs Empire Club he expected negotiations on the Auto Pact to begin by the summer but would not speculate on their contents. “It's hard to say in view of the severe downturn in the North Amercan auto in dustry.” He said he thought it was unportant to mamtam access found it wasn’t suitable for local road conditions,” Wright said. The Lada weights 200 pounds more than the equivalent Fiat - the engine and gear boxes were redesigned by the Russians. The car that runs in the Siberian cold has continued to sell despite the east-west diplomatic freeze and cries to boycott the car from persons, including some Canadian Olympic athletes, angered by the Soviet in- vasion of Afghanistan, Wright said. “We've put about 10,000 vehicles on the road since we started (in 1977), and that's basically been in Ontario until this year,” Wright said. “My own personal feeling is that to 95 per cent of the people in this country, their pocket boek is more im- portant than politics. to the huge American auto market rather than con- centrate on developing a Canadian-made auto designed for specifically Canadian conditions. Gray said an an- nouncement could be ex- pected in the next couple of weeks on whether the government would provide aid to financially troubled Chrysler Corp. and the form such aid would take. “I think we're going down the home stretch im the matter,” he said. Chrysler Canada Ltd. has asked the Canadian government for some form of financial! aid or loan guarantees to help convert Windsor plants where employees have been laid off. Gray also. said the Canadian auto’ industry offers sigmficant long-term economic opportunities despite its current serous problems. The minister, whose Ontano nding encompasses the Windsor area which has been hit hard by layoffs from Jaguar “If the product is good value for the money, then I don't see to much effect. Even the number of inquiries we get from the United States is incredible, both from people who want to buy the car and dealers who want to handle the car.” With a 60 per cent growth in sales this quarter com- pared to the same period in 1979, a tidy but unspecified profit, and thousands of backorders to bolster his confidence, Wright was unshaken by the political attacks on their product. “I'm sure a lot of people in this country think we're a Russian company,” he said. “Bul, we're a group of Canadian businessmen trying to do business, just like a lot of other businessmen importing products from other for summer local auto plants, said the government was coramitted “to restore and increase the long-term health of the automobile industry”. Gray said the govern- ment’s efforts included discussions aimed at in- creasing parts purchases, capital investment and research and development in Canada. Meanwhile, Gray iS scheduled to meet next Monday in Dearborn, Mich., with Ford Co. of- ficials about a decision to close a casting plant in Windsor and lay off a shift at ordon IMPORT AUTOS LTD. 10th & Alma, Vancouver Parts & Service for all import makes Classic& Ahorouqhbred Motors 740 Marine Drive. Service Dept. Parts Dept. North Van 984-0211 988-6331 countries.” Wright said the Soviets had not invested any money in Lada Cars of Canada, which now has an inventory of $30 million im cars and parts. “We are the importer and distributor for Canada,” he said. “We import a com- pletely assembled car. The only thing we do when they come into Halifax is we install a catalytic converter on them.” Lada and its 32 dealers now employ about 360 Canadians. Wright said the company plans to have 120 to 130 dealerships within 18 months. There are now 22 dealers in Ontario, five in Quebec, four in the maritime provinces and one in Winnipeg. “We've decided to not to ag assembly plant in Oak- ville, Ont. Gray said Thursday his meeting with officials from the American parent company of Ford Canada would be an attempt to persuade the company not to take the action which would leave more than 1,000 workers jobless by year's end. Meanwhile, he said the government was making contacts with foreign auto makers to ensure Canada received its share of any new investment and production. 733-8105 R.V. 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