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. Last Updated: 07/27/2016

Report: AvtoVAZ Recalls Kalina Models

Carmaker AvtoVAZ has recalled 6,200 Kalina models due to a steering wheel defect, Kommersant reported Monday.

AvtoVAZ, which started selling the model less than a year ago, declined to confirm the report. Kommersant said the repairs could cost the carmaker $650,000.

One Lada dealership, which sold 73 Kalina models in January, confirmed it had been contacted about the recall."We, as dealers, have also received such a directive," Marina Askarova, a spokeswoman for Inkom-Avto, said in a statement.

Also on Monday, Vedomosti reported the state was considering converting AvtoVAZ debt into equity to increase its stake of roughly 2 percent in the carmaker.

AvtoVAZ currently owes the federal government an estimated $180 million, equivalent to roughly 12 percent of the company's value, according to brokerage UFG.

"We expect that the state will become a shareholder in AvtoVAZ in 2006," said Gairat Salimov, an automotive analyst at brokerage Troika Dialog. The carmaker's current debt to the government, which was restructured a few years ago, now amounts to $151 million, according to Troika.

AvtoVAZ declined to comment on the Vedomosti report.