AvtoVAZ will go ahead with the production of a car based on the Dacia Logan platform at its Togliatti factory in Russia after receiving approval from the Renault–Nissan strategic committee.
The committee was set up in April 2008 to coordinate the joint projects by Renault–Nissan and AvtoVAZ. It also approved the participation of each partner in the project and timeline for its implementation, according to a statement from the Russian carmaker.
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Renault holds 25% plus one share in AvtoVAZ and signed an agreement in November last year to restructure the Russian company’s debt and to transfer equipment and licenses to produce cars based on the Logan, also known as the B0 platform.
The Russian carmaker is projected to manufacture 900,000 vehicles per year starting in 2015, according to the agreement.
Seperately business daily Vedomosti reported that AvtoVAZ’ car sales were projected to total only 20,000 units in January. The paper cited two sources at the company.
As of 29 January, the carmaker’s car sales were at 17,000–18,000 units, a source close to the company told the daily, adding that it was doubtful dealers would have sold many cars on 30-31 January.
Sergei Tselikov, director of the Russian automobile market statistics agency Avtostat, told the Prime Tass news agency that this was the lowest level of AvtoVAZ monthly car sales for several years. Its previous lowest monthly sales were recorded last November when it sold around 24,000 cars, according to the daily.
AvtoVAZ declined to disclose the number of sold cars and said only that low sales were caused by the New Year holidays when buying activity is lower. Sales have also suffered since the government halted its auto loan program, under which it was providing interest rate subsidies amounting to two-thirds of the Central Bank of Russia’s (CBR) refinancing rate on loans for domestically produced cars sold for up to RUB600,000 (US$19,750).
Additionally AvtoVAZ was limiting car supplies to indebted dealers and has started demanding the recovery of debts in court, an employee at one of AvtoVAZ’ dealers told the daily.
