Renault has confirmed it is in talks with AvtoVaz of Russia about a possible future collaboration, according to Reuters.

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A Renault team is reported to be in Togliatti at the AvtoVAZ headquarters and plant at the moment.


Local press sources have reported that Renault is considering taking a stake of up 20% but Renault would not confirm this, saying that such reports were premature.


Reuters said that Renault started negotiations with AvtoVaz last year, before the takeover of AvtoVaz by state-owned defence agency Rosoboronexport. The new management team is said to be less open to the idea of Renault taking a stake in the company than the previous management.


Renault told Reuters that talks were not focused on the Logan, which Renault would undoubtedly like to have built in Russia. Local press reports confirm this. They say that Renault is considering supplying AvtoVaz with a new car design and engines. Engine production would later be transferred to AvtoVaz.

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AvtoVaz already has an alliance with GM, but the relationship appears to be at risk since the takeover of AvtoVaz by Rosoboronexport. Rosoboronexport has announced plans for a $US5bn shake-up of AvtoVAZ involving a new factory and several new models, and AvtoVAZ executives have said they are reviewing the future of the joint venture.


The new management wants to make a range of modern models, including a hatchback, minivan, station wagon and SUV-based crossover on top of the current Niva sport-utility model.


AvtoVAZ seems to be copying the Koreans and Chinese, talking with a number of overseas design studios, including Pininfarina, Bertone and ItalDesign, which would allow it to retain its independence.