Renault-Nissan and AvtoVAZ merge into Russia’s biggest auto parts buyer image

AvtoVAZ and the Renault-Nissan alliance will come together in terms of purchasing activities in Russia. The merged unit will now represent the biggest components buyers in the country’s car industry.

For those who did not know, AvtoVAZ is Russia’s largest automaker and it is being controlled by a joint venture of which Renault and Nissan own 67%. The AvtoVAZ Renault Nissan Purchasing Organization (ARNPO) will start working the following month and it will be based in Togliatti, whis is one of the largest auto plant in the world that produces cars such as Lada, Renault, Nissan and Datsun.

The head of the newly merged organization will be the vice president from AvtoVAZ, and the employees will come from all three parties.

A Renault spokesman stated that the alliance was created to share the same structure around the world for all its operations. Renault said that ARNPO will add to the supply base in Russia by achieving international quality, development and manufacturing standards.

The establishment of ARNPO marks the latest milestone in the partnership among the three companies which began in 2008 when Renault took a 25% stake in Russia’s largest automaker. ARNPO will manage the purchasing activities of all three partners in Russia under the international standards of the Renault-Nissan Purchasing Organization.

By Gabriela Florea