French carmaker Renault is in talks over possible upgrades for the third production line at the AVTOVAZ automotive plant in Tolyatti, Managing Director of Renault Russia Bruno Ancelin told journalists in Geneva.
He further specified that he was talking about the Lada Samara assembly line, and reminded the media that a similar cooperative project is already ongoing at Assembly Line B0.
“We are discussing possible upgrades to the third assembly line to use it to manufacture new models. It will be capable of producing one Renault model and several Lada models,” he said, adding that model range will depend on whether production of Lada Samara is terminated. Bruno Ancelin did not disclose the starting date of the upgrades, possible models to be produced and production volumes.
He said that eventually AVTOVAZ would have three production lines in operation, each with an approximate annual production capacity of 350,000 cars at three shifts. “This gives us one million fifty thousand cars total for AVTOVAZ. Adding Avtoframos capacity Moscow and that of the St. Petersburg Nissan plant, we would end up with 40% of the market we are targeting for the alliance by 2016,” he reminded the journalists.
He further clarified that 1,050,000 cars would be produced in Tolyatti, 350,000 at IzhAvto, 185,000 at the Moscow plant, and another 120,000 at a plant in St. Petersburg. “This will add up to 1.7 million cars,” Ancelin said.
“When we are talking about 40% of the market, it is more than just the Russian market, it is the Eurasian market that also includes Ukraine and Kazakhstan,” he added, emphasizing that 1.7 mn cars is just the production capacity, rather than a hard sales target.
As a reminder, B0 production line is used for building Lada Largus and Lada Granta cards, with Nissan Almera added to the mix from December 2012.
The line is to launch production of Renault Logan in 2H 2013, and its top annual production capacity is 350,000 cars. Approximately EUR 400 million has been invested in the production line.
OJSC AVTOVAZ (based in Tolyatti) was incorporated on January 5, 1993г. The current core shareholders of AVTOVAZ include Russian Technologies State-Owned Corporation (Rostechnologii, with approximately a 29% stake), Troika Dialog Investments Limited (with 20.14%) and Renault (with 25%). AVTOVAZ sold 537,600 Lada cars in Russia in 2012, 7% down year-on-year.
The French Renault group is a major European automaker, selling cars under Renault, Dacia and Renault Samsung Motors brands, with its flagship Renault brand accounting for 83% of total sales. Renault and Japanese car maker Nissan set up a strategic alliance in 1999, giving Renault a 43.4% ownership stake in Nissan, and giving Nissan 15% in Renault. The company also holds a blocking interest in Russia’s AVTOVAZ (25% lus one share), and intends to increase it to controlling stake.
Source: lenta.ru
