Renault mulls producing cars for Russia after acquiring majority of AvtoVAZ

Article by Anita Panait, on March 9, 2012

French carmaker Renault is considering producing vehicle models that will target Russian consumers as soon as the company and Japanese affiliate Nissan formally ink an agreement to acquire a majority stake in Russian carmaker AvtoVAZ. Philippe Klein, the head of Renault's product planning, said during an interview at the ongoing Geneva Auto Show that Renault may want to use AvtoVAZ's facilities to develop vehicles intended for the Russian market.

"We do have the situation in India, where we launched the Renault Pulse, and we leveraged the assets of Nissan in this region to expand our line-up," said Klein, adding that the company’s potential move is in line with its global strategy of “undertaking when it makes sense."

Nissan is also mulling the same production option as Renault. Colin Dodge, Nissan Chief Performance Officer, said at the show that Nissan wants to add three models built in Russia.

The Renault-Nissan alliance is currently holding talks with AvtoVAZ's top two Russian shareholders to acquire a controlling stake in the Russian automaker and expects to seal the deal in coming weeks, according to Carlos Ghosn, CEO of Nissan-Renault. Ghosn said that the talks will probably accelerate now that Russia's presidential elections are done. Renault currently holds a 25% stake in AvtoVAZ.

Once the deal is sealed, the three partners, Nissan, Renault and AvtoVAZ, will produce cars from a joint platform used for Renault's Dacia Sandero and Logan models, Klein disclosed.

The alliance is hoping to take advantage of the growing car and light-truck market in Russia, where around 2.65 million vehicles were sold in 2011 for a 39% growth.

AvtoVAZ posted a 33% hike in sales in February. Christian Klingler, sales chief at Volkswagen, remarked that the expanding car maker in United States, Russia and China will offset the declining demand for vehicles in Europe to keep the global auto-industry growth at  a "low single-digit" rate.

If you liked the article, share on:

Comments

Recommended

Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
It has been six years since Lexus introduced the current generation of the CT 200h hybrid. For the 2018 model year, the current CT 200h lives through with some minor...
by - August 15, 2017
What happens when an auto company finds that a certain offering is not selling enough to make a good business case? Continuing to build and sell such vehicle would only...
by - August 14, 2017
It looks like that Audi is in the final stages of finalizing its new Audi Q8 sports utility vehicle. While the German premium carmaker has yet to reveal the looks...
by - August 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries