The Renault-Nissan Alliance and AVTOVAZ partnership inaugurated today, April 4th, a new car manufacturing plant in Togliatti, Russia.
The AVTOVAZ plant in Togliatti, is the largest assembly plant in the world, with the first car off the new line being a Lada Largus multi-purpose van. The companies invested €400 million in the 250,000-square-meter plant, which will take full advantage of the Renault-Nissan Alliance’s expertise in engineering and cost savings.
The plant will produce 350,000 units annually for the three brands, Renault, Nissan and AVTOVAZ, beginning with two new Lada models, followed by a Nissan vehicle later in 2012, and two Renaults in 2013.
“Our collaboration is deepening every day and increasing economies of scale across the Alliance,” said Renault-Nissan Alliance CEO and Chairman Carlos Ghosn. “It’s a win-win for all parties – and the benefits keep accelerating as Russia becomes Europe’s economic engine of growth.”
The partnership between the two companies started in 2008 with Renault purchasing 25% stake in AVTOVAZ and beginning the transfer of technology and know-how to AVTOVAZ manufacturing facilities.
“We initiated our project of a common production line in Togliatti two years ago, in the most difficult times for the economy – so it’s a great honor to see it come to fruition today,” said AVTOVAZ President Igor Komarov. “Our partnership continues to grow deeper by the day.”