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this post was submitted on 04 Jan 2024
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Russian Lada was a “people’s car” that (like other Soviet products) was built for internal use and protected from competition. When the Soviet Union fell and Russian car manufacturers were exposed to competition, they eventually went out of business.
The story is not that simple though. The Lada was a really popular and robust car. It lived on for a long time and exported versions to Canada and other places using Western fuel-injected engines. I have no idea what happened to the company in the end but it seems clear at least to me that it was the sudden huge change in competitive landscape that did it in, not the industrial planning.
Škoda is a similar car brand from (at the time) Yugoslavia that managed to survive the fall of the Soviet Union and is still active as a brand today.
Still exist apparently https://en.m.wikipedia.org/wiki/Lada
This part:
IS caused by industrial policy. That's the whole point. They can't keep up with competitive landscapes because the policy made it good enough then they just stopped and since it's protected there's no reason to improve.
Yes, the initial version was popular, but industrial policy preventing it from advancing was it's death.
You literally explained how industrial policy killed it and then said it wasn't industrial policy.