Renault-Nissan Alliance Expands Partnership with Avtovaz

The Renault-Nissan Alliance and the Russian Avtovaz carmaker (who owns the Lada brand) have announced a strengthening of the collaboration.BAck in February 2008, Renault purchased 25% stake +1 share in Avtovaz. The partnership has now been extended to Nissan. The three companies, which registered a combined market share of 30 percent in Russia last year, aim to bring this to a level of 40 percent in 2010.

The cooperation has been expanded in all major areas, including platform sharing, manufacturing, R&D, logistics, acquisitions, as well as sales & marketing. The three partners have created a common organization named “Avtovaz - Renault - Nissan Quality and Supplier Development” (ARNQSD) that will allow them to increase the level of locally sourced parts. The new organization, which employs around 100 people, is based in Togliatti with a remote office in Moscow

The Alliance and Avtovaz will have access to each other’s platforms, with the three parts involved developing a product cycle plan for the local and export markets. The Russian company’’s R&D will be enhanced through more profound connections with the Alliance. The latter will also benefit from this, as its products will be better adapted to Russia’s auto market.

The Alliance will extend its logistics cooperation for Russia with Avtovaz, focusing on increasing the level of quality and reliability, as well as reducing costs. The the companies run three plants in Russia (Togliatti, Moscow and St. Petersburg), which will reach a combined production capacity of 1.3 million units by 2012. The new development will see the Alliance Production Way (a set of standards) be expanded to cover all the plants, enabling Avtovaz to achieve the same level of product quality as the Alliance.

In addition to that, Renault and Lada will collaborate to develop a new nationwide dealer network in the country and will create a project that will allow them to harmonize their parts&service strategy.