Renault wants to improve the effectiveness of the main factory of the Russian automaker AvtoVaz, reorganize group's relations with suppliers and regenerate the supply of its brand, Lada said Tuesday Patrick Pélata, Deputy Director General Mark on the diamond.
"Beyond that, if we have the opportunity, we will use the capabilities of the Togliatti plant to produce Renault vehicles and why not Nissans," he said on the sidelines of the 78th Geneva auto show.
Renault concluded on February 29 its initial stake in AvtoVaz, the number one automotive Russian, to the tune of 25% to a little over one billion dollars (660 million euros). The amount is the largest ever made by an international manufacturer in Russia, a market currently considered by specialists as one of the most promising in the world.
"The Russian market is growing as fast after China. Around 2012 or 2013, or even perhaps before, some four million vehicles could be sold each year, it will be the biggest European market," Patrick Pélata said.
"We have to be in Russia but we must be there with a team of suppliers and a solid cost structure in order to achieve competitive very quickly economies of scale," he added.
He said qu'AvtoVaz should therefore invest in its production, but declined to specify in what proportion.
Renault has its own factory in Russia, on the outskirts of Moscow. Nissan is also present in St. Petersburg.
The brand wants to lozenge also increase production of the Logan for the Russian clients. The company is expected to double its annual production to reach 160,000 vehicles at the end of 2008.
"There is a big potential for low-cost cars in Russia, this trend should continue given the increase in the purchasing power of the population," said Patrick Pélata.
In Europe, the Logan is marketed by the Romanian Dacia.
(C) 2008 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are regist
"Beyond that, if we have the opportunity, we will use the capabilities of the Togliatti plant to produce Renault vehicles and why not Nissans," he said on the sidelines of the 78th Geneva auto show.
Renault concluded on February 29 its initial stake in AvtoVaz, the number one automotive Russian, to the tune of 25% to a little over one billion dollars (660 million euros). The amount is the largest ever made by an international manufacturer in Russia, a market currently considered by specialists as one of the most promising in the world.
"The Russian market is growing as fast after China. Around 2012 or 2013, or even perhaps before, some four million vehicles could be sold each year, it will be the biggest European market," Patrick Pélata said.
"We have to be in Russia but we must be there with a team of suppliers and a solid cost structure in order to achieve competitive very quickly economies of scale," he added.
He said qu'AvtoVaz should therefore invest in its production, but declined to specify in what proportion.
Renault has its own factory in Russia, on the outskirts of Moscow. Nissan is also present in St. Petersburg.
The brand wants to lozenge also increase production of the Logan for the Russian clients. The company is expected to double its annual production to reach 160,000 vehicles at the end of 2008.
"There is a big potential for low-cost cars in Russia, this trend should continue given the increase in the purchasing power of the population," said Patrick Pélata.
In Europe, the Logan is marketed by the Romanian Dacia.
(C) 2008 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are regist
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