Downsizing in “Russia’s Detroit”

Abstract

This chapter addresses the case of Tolyatti, the country's largest monotown, often referred to as “Russia's Detroit.” It begins by investigating another example of Russia's industrial policy, this time through the automobile sector. The chapter details the rise of Russia's leading alternative union through that sector, and how its strengths and limitations mirrored those of the auto industry. It then focuses on AvtoVAZ, Russia's leading auto factory, located in Tolyatti. Just like the US city of Detroit, Tolyatti, along with AvtoVAZ, has experienced hard times. Indeed, the case of AvtoVAZ seems to provide a counter-example to one of the central claims of this book: massive layoffs took place here without large-scale social unrest, let alone a social explosion. Yet on closer inspection, the chapter finds that the downsizing of AvtoVAZ was accompanied with huge subsidies and considerable state intervention, some of which, rather than easing social tensions, made the situation even more combustible.