The plant was set up as a collaboration between Italy and the Soviet Union and built on the banks of the Volga River in 1966. A new town, Tolyatti, named after the Italian Communist Party leader Palmiro Togliatti, was built around the factory. The Lada was envisaged as a "people's car" like the Citroën 2CV or the VW Beetle.
The lightweight Italian Fiat 124 was adapted in order to survive treacherous Russian driving conditions. Among many changes, aluminium brake drums were added to the rear, and the original Fiat engine was dropped in favour of a newer design also purchased from Fiat. This new engine had a modern overhead camshaft design but was never used in Fiat cars. The suspension was raised to clear rough Russian roads and the bodyshell was made from thicker, heavier steel. The first Lada models were equipped with a starting handle in case the battery went flat in Siberian conditions, though this was later dropped. Another feature specifically intended to help out in cold conditions was a manual auxiliary fuel pump.
Exports to the West began in 1974; under the original agreement with Fiat, the car could not be sold in competition with the 124 until its replacement (the Fiat 131 Mirafiori) had been released and all Fiat production of the 124 had ceased.
Engines fitted to the original Ladas start with the 1.2 L carburetor in the original and go up to the 1.7 L export model set up with a General Motors single point fuel injection system. Diesel engines were later fitted for the domestic market only. The drivetrain is a simple rear-wheel drive setup with a live rear axle. The engine is an inline four with two valves per cylinder and a single overhead camshaft.
The Fiat-based Ladas feature various headlight, trim and body styles. The original, Fiat style models included VAZ-2101 sedan and VAZ-2102 station wagon. 1972 saw the introduction of a deluxe version of the sedan, VAZ-2103, which was based on Fiat 124 Special 1968 and featured a new 1.5 L engine and twin headlights. In 1974, the original VAZ-2101 was updated with new engines and interiors; VAZ-2102 underwent the same improvements in 1976. The body style with two round headlights was manufactured until 1988; all others remain in production in slightly updated form.
The VAZ-2106 introduced in December 1975 was an updated version of VAZ-2103, really which was based on Fiat 124 Special T 1972, featuring different interiors and new 1.6 L engine. 2106 is the oldest and the most popular rear-drive model of AvtoVAZ; its production ended in 2001 from Tolyatti was postponed to Izhavto (Izhevsk), which was completed in December 2005.
VAZ-2105, still based on the 2101 but updated to 80s styling, was introduced in 1980 and was marketed outside the Soviet Union under the Riva or Laika names, depending on country. Square headlights and new body panels distinguish this style from the old models. A deluxe version, VAZ-2107, was out in 1982; it featured a better engine, refined interiors and a Mercedes-like radiator grille. In 1984, the VAZ-2104 station wagon completed the line-up. In 2002 station wagon 2104 production was transferred to IzhAvto. Production of the sedan in 2105 completed 30 December 2010, and production of deluxe sedan 2107 to March 2011 will be transferred to IzhAvto.
In the domestic market, these classic models were called Zhiguli (Жигули). The Lada name was used for exports only, but a large share of Ladas was reexported from Eastern bloc countries, so the brand was well known in the domestic market as well.
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