AvtoVAZ to produce Renault-Based Lada Vehicles from February image

AvtoVAZ, the Russian automobile manufacturer formerly known as VAZ plans to start producing a sedan based on a Renault platform next month amid talks with the French giant and its partner Nissan Motor Co. to boost their stake in Russia’s largest automaker, Bloomberg reports.

According to the report, the first new Lada vehicles should roll of the assembly line next month, Igor Komarov CEO of AvtoVAZ said.

The company will later produce later Nissan vehicles on the same line, allowing the Russian company to increase its output to as many as 750,000 vehicles this year from approx. 634,000 last year, according to Komarov.

AvtoVAZ, 25 percent owned by France’s Renault, needed a multi-billion dollar state bailout during the financial crisis, but has since unveiled new models and agreed to build new Renault and Nissan vehicles at its sprawling central Russian plant in Togliatti.