In February, 2008 AVTOVAZ and Renault reached the strategical partnership agreement according to which French party is to obtain block equity holding of Volzhskiy Avtozavod. In 2012 the ‘Rostec’ and Renault-Nissan JV establishment was announced. Share fraction of the state corporation was 32.9% and Renault-Nissan had 67.1%. Nissan was to become major shareholder (50%+1 share) while ‘Rostec’ retained blocking stake (25%+1 share).
JV setting up guarantees a long-term fruitful cooperation and seriousness of partners’ intentions. These conditions assume certain share disposition coordination and allow mutual asset management policy working out, crafting development strategy, appointing management, etc.
‘Rostec’ and Renault-Nissan interaction is mostly determined by the interest to innovative technologies. Partners are intended to manufacturing the cars based on B0 platform which is employed in Renault Dacia, Sandero and Logan models. Besides, the JV is to develop new engine and transmission, testing, sampling and component designing along with personnel training and unitary standards, codes and range implementation.
The alliance shows the interest to AVTOVAZ as to default productive platform for covering the demands in Russian and external (mainly CIS) markets. One of the most significant joint projects of AVTOVAZ and the alliance so far is Lada Largus, made on the base of B0 platform and oriented to family station wagon and light commercial car sector. Renault and Nissan also plan to launch assembly of their own low-end car models within the AVTOVAZ facilities. Such a close collaboration permits improving the quality of the production and enhances technological assembly line level increase.
Currently the Renault-Nissan alliance is auditing financial, legal and ecological aspects connected with the activity of AVTOVAZ to improve them and bring into accordance with international standards, which is to affect AVTOVAZ asset economic efficiency. Given the Renault-Nissan innovative technologies and developments this interaction will exert positive influence to Russian automobile industry in general. Besides, the partnerships with the leading international brands will guarantee the stability to the Togliatti company town.