The Renault-Nissan Alliance and AvtoVAZ want to dominate the new car market in Russia, aiming to secure a 40% share by 2015, up from 30% last year.
AvtoVAZ is already established as the leading domestic maker in Russia and in February 2008 Renault purchased a 25% stake plus one share in the Russian company to form a strategic partnership.
Nissan is also now part of the partnership that plans to expand the scope of cooperation in all major areas: platform sharing, manufacturing, research and development, logistics, purchasing and sales and marketing.
The Alliance and AvtoVAZ will each have access to product platforms and engines developed by the other partner. Each of the three brands – Lada, Renault and Nissan – will develop a clear product cycle plan for the Russian market and, for Lada specifically, for markets outside Russia.
AvtoVAZ’s R&D will be strengthened through deeper cooperation with the alliance, with a remit to enhance the quality of the Russian company’s products, to share know-how and development costs, and to enable the alliance to adapt its products to the Russian market by expanding local component sourcing.
The AvtoVAZ purchasing department and Renault Nissan’s Russian purchasing organisation will work together to improve supplier quality and supplier development teams will be unified under a single operational management.
The alliance will also extend its joint logistics organisation for Russia to AvtoVAZ, focusing on the quality, reliability and cost of logistics.
With three plants in Russia -Togliatti, Moscow and S. Petersburg – the two partners will have a production capacity of 1.3m units by 2012. The ‘Alliance Production Way’ will be gradually extended to cover all of the plants, ensuring production flexibility and enable AvtoVAZ to achieve the same level of product quality and production costs as other global plants in the alliance.