Renault is introducing its new Latitude model at the Moscow motor show and said it would launch the Duster, the new automatic Logan, Sandero and Sandero Stepway in Russia (assembled from complete knockdown or CKD kits), as well as local assembly of the Fluence sedan and Mégane hatchback (from semi-knock down or SKD kits) in Russia. These vehicles will be produced starting this year and next.
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Assembly of SKD kit Fluence and Mégane hatchbacks will start at the Moscow Renault plant in the first half of 2011. CKD Duster assembly will commence towards the end of 2011.
“The local production of these models allows Renault to offer competitively priced cars that are manufactured with the specific needs of the Russian market in mind,” the automaker said in a statement.
The Fluence sedan was launched in Russia last April. The Mégane hatchback has been sold there since May.
The Duster is a 4×4 built on the B0 Logan platform. Russian versions will have interiors, equipment and engines adapted to Russian customer prefernces.
Renault is one of the key players in the Russian auto industry. Since 2005, in partnership with the government of Moscow (Avtoframos), it has developed production facilities in the country and, in 2008, became the strategic partner of AvtoVAZ, holding 25%. This alliance has targeted 40% of the market by 2015.
Renault has ranked as the number-four brand in Russia since April 2010. Its market share has risen to 5.3%, with 50,801 cars sold in the first seven months of this year. Logan has held onto its position as Russia’s top-selling foreign car.
With three production sites in Russia, the partnership will have an overall production capacity of 1.3m cars in 2012: the Moscow Renault plant (production capacity 160,000 cars per year), the Nissan plant in St Petersburg (50,000) and AvtoVaz’ production facility in Togliatti (1.1m).
The partners are currently implementing a production system for the alliance in the Togliatti plant and a joint production line for the manufacture of cars based on the B0 (Logan) platform, with a capacity of 350,000 vehicles per year. Each of the three brands will produce models of their car range on this production line.
Lada will be the first of the three carmakers to produce its vans and estate cars using the production line. In addition the Renault-Nissan Alliance and AvtoVaz united their quality and supplier development teams in March 2010. The joint team is working on making quality improvements to the Russian supplier base.
The qualitative and quantitative development of suppliers in Russia, a country where local production is key to success, will be advantageous to all the partners.
The goal for all three companies is to have 74% of components manufactured locally for the joint production line.
