The construction of a new automobile plant in Izhevsk began in 1965 with the support of D.F. Ustinov, who was then the Minister of Defense Industry of the USSR, due to the increased prosperity and demand of the population and to create internal competition for AZLK and VAZ vehicles. The first car of Izhevsk production rolled off the assembly line on December 12, 1966 - it was Moskvich-408. The car was produced on the premises of the completed and converted Progress building, owned by Izhmash. This small building housed a "temporary", bypass version of the production - with areas for welding, painting and assembly. All parts and components of the car were supplied with AZLK. But already in 1971, the main conveyor of the "big" car plant was put into operation, and the production of cars in Progress stopped.