At the occasion of his recent visit to Togliatti, Russia, where he chaired the board of Directors of AVTOVAZ, CEO Carlos Ghosn shares his perspective on the Russian market and on the benefits of the partnership for AVTOVAZ and for the Alliance.

One week after they left the Champs Elysées in Paris, the 19-strong team of Renault-Nissan Alliance runners are well on their way to their final destination, Togliatti in Russia… some 4,000kms away.

The aim of the run is to promote human values and team spirit within the Alliance and to highlight the power of the partnership: Togliatti is the home of the AVTOVAZ manufacturing complex, a joint venture which is on target to build 1.7 million Nissan, Renault and Lada vehicles a year.

Run as a relay event, the plan is to cover the distance in 17 days. The runners are split into three teams (one running, one resting and the third leapfrogging the others to the next starting point) with individuals each running between 10 and 15 kms a time before handing the baton onto a colleague.

- Jointly-owned organization to oversee a defined scope of purchasing activities for Renault, Nissan and AVTOVAZ in Russia 

- Will allow partners to generate significant savings thanks to increased volumes and better pricing with suppliers

- Will strengthen global quality and competitiveness of LADA, AVTOVAZ’s iconic brand

The Renault-Nissan Alliance and AVTOVAZ today announced the establishment of a common purchasing organization in Russia. This structure will manage a defined scope of purchasing for Renault, Nissan and AVTOVAZ joint activities related to industrial equipment, powertrains and vehicles based on common platforms.

"Common Purchasing Organization” LLC (CPO) is equally owned by AVTOVAZ and Renault-Nissan Purchasing Organization (RNPO) on which it will be modeled. Established in 2001, RNPO is Renault-Nissan’s largest common organization and biggest contributor to new synergies derived from cost reductions and cost avoidance. RNPO covers all purchasing activities of both Renault and Nissan worldwide.

Like RNPO, CPO is expected to generate significant savings for the three partners in Russia thanks to increased volumes and better pricing with suppliers. CPO will use the RNPO methods and standards that have contributed to its success. RNPO generated 851 million euros in new synergies for Renault-Nissan in 2012, or about a third of total synergies.

Togliatti, Russia – Russia’s top automaker AvtoVAZ last week hosted visiting Renault-Nissan Alliance executives, including CEO and Chairman Carlos Ghosn, who toured facilities with Igor Komarov, President of AvtoVAZ, and met other officials.

A leading economist and Rector at the New Economic School in Moscow, Sergei Guriev was invited to the World Economic Forum to speak alongside Russian Prime Minister Dmitry Medvedev on the opening day. A former Young Global Leader of the World Economic Forum, he is today on the Forum's Global Agenda Council on Europe. In this short video, he tells us his views on sustainable mobility in Russia, the prospect for electric vehicles, and the significance of the Alliance's joint venture with AvtoVAZ, maker of LADA cars.

The Lada brand has been dominant in Russia for decades, and manufacturer AvtoVAZ is aiming to use its Renault-Nissan ties to shore up its position and products in the years ahead.

Here Igor Burenkov, director of external relations, talks about AVTOVAZ’s new SUV concept unveiled at the recent Moscow Automotive Salon.

•    Renault-Nissan and state corporation Russian Technologies will form joint venture to accelerate product launches and technology transfer to AVTOVAZ, Russia’s largest carmaker.
•    Renault-Nissan will invest about US$750 million, and Russian Technologies will favorably restructure debt as they form the joint venture.
•    Renault-Nissan will get a majority stake in the joint venture, which will control AVTOVAZ; transaction is expected to be complete in 2014.
    
PARIS – May 3, 2012 -- The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Renault-Nissan Alliance an indirect majority stake in AVTOVAZ, according to a new memorandum of understanding.

•    €400 million investment generates capacity of up to 350,000 cars annually across three brands.
•    After Lada Largus, separate models from Nissan and Renault will follow.
•    This new production line contributes to the three partners’ common goal: achieve capacity of at least 1.6 million vehicles per year in Russia by 2016.

TOGLIATTI, Russia – April 4, 2012 -- Russian Prime Minister Vladimir Putin inaugurated a new car manufacturing facility today, marking the latest milestone in the expanding Renault-Nissan Alliance and AVTOVAZ partnership.