The Renault-Nissan Alliance, which purchased 25% of AVTOVAZ in 2008, has now partnered with Russian Technologies to create a joint venture that will hold a majority stake of 74.5% in Russia's largest automaker and owner of the LADA brand.
Renault-Nissan will invest RUB23 billion (approx. $742 million) for 67.13% of that joint venture by mid-2014.
Eight months ago, Russian president Vladimir Putin inaugurated an assembly plant with a production capacity of 350,000 vehicles per year in Togliatti. Five different Renault, Nissan and LADA models will be manufactured there in 2013.
With the Togliatti upgrades and those planned at other manufacturing facilities, Renault-Nissan and AVTOVAZ will have a Russian capacity of at least 1.7 million cars per year starting in 2016.
By the way, Russia is currently the third largest market for the Renault-Nissan Alliance with 878,990 units sold in 2011, including 578,387 LADAs. The recent acquisition means that the group will sell more than one in 10 cars worldwide.
Renault-Nissan will invest RUB23 billion (approx. $742 million) for 67.13% of that joint venture by mid-2014.
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| Photo: Renault-Nissan |
Eight months ago, Russian president Vladimir Putin inaugurated an assembly plant with a production capacity of 350,000 vehicles per year in Togliatti. Five different Renault, Nissan and LADA models will be manufactured there in 2013.
With the Togliatti upgrades and those planned at other manufacturing facilities, Renault-Nissan and AVTOVAZ will have a Russian capacity of at least 1.7 million cars per year starting in 2016.
By the way, Russia is currently the third largest market for the Renault-Nissan Alliance with 878,990 units sold in 2011, including 578,387 LADAs. The recent acquisition means that the group will sell more than one in 10 cars worldwide.