Russian automakers AvtoVAZ and Sollers have signed a cooperation agreement to develop a suppliers’ auto components base, according to a statement issued by AvtoVAZ.

Both companies are hoping that the agreement will allow suppliers to be developed that can supply and meet the needs of both companies.

Russia’s automotive supply base has been identified by analysts as weak because of the history of highly vertically integrated companies such as AvtoVAZ who did almost everything in-house.

The cooperation between the two should encourage higher volumes and lower unit-costs on parts.

The companies have also agreed to support and develop the workforce capacity in the country’s car industry, AvtoVAZ said.