AutoVAZ is on the way and the Prime Minister showered the show with promises of cash, guarantees and loans of more than over $1 Billion were he met with Tolyatti Plant workers.

Every where Prime Ministers and President's are showering packages for the Auto industry which is believed to be the worst hit. Keeping things in mind with the situations all over the world. People would stop buying cars to save that money for tomorrows food, its a usual thing. Let the car market give discounts and see how they go.

Heads of states seem to lavish money on car manufacturers in this time of economic crisis.
Obama wants to do it with GM and Chrysler in the US.
Sarkozy gave loans to Peugeot-Citroen and Renault, SWeden wants to bail out SAAB, etc...
Now Putin wants to help AutoVAZ.

Apart from solving temporary cash flow problems and gaining some votes in the process, there is no proof that this will actually save these companies.

The salvation will come from the renewed confidence from the market, when buyers will be able to acquire the vehicles they need.

Most of the ailing car manufacturers produce cars that are unattractive, unefficient or obsolete: AutoVAZ is in that group. More than cash, it need time to create a new range for the 21st century.
The LADAs produced now are 20 years behind the competition.