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Lada saved by Renault-Nissan

For many Quebecois, cars Lada can recall a very bad memory. By cons I have also known some who were satisfied but condition to accept many compromises. At the time, a teacher at the school board Louis-Fréchette Levis, where I worked, was to provide two Lada for the price of a subcompact Japanese. Lada for him and one for his wife.

Avtovaz the company which is the manufacturer of several brands of Russian cars for decades Lada factory using platforms and especially of the elements borrowed a mechanical Italian Fiat.

Thereafter, it was the turn of General Motors, to do the same with the manufacturer that it was on a smaller scale. Moreover, this association has never brings very tangible results and for both companies.

Today is the turn of the Renault-Nissan duo agreements with AvtoVAZ. Agreements that put an end to a saga between AvtoVAZ and the Russian authorities for the bailout of the company.

To learn more about the rescue, here is the statement issued by Renault

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RENAULT-NISSAN ALLIANCE The AVTOVAZ AND STRENGTHEN COOPERATION IN RUSSIA

The Renault-Nissan Alliance and AVTOVAZ today announced the strengthening of their cooperation with the aim to ensure the profitable development and viability of the activity of each of the three companies in Russia.

In February 2008, Renault and AvtoVAZ together formed a strategic partnership and Renault took 25% + 1 share stake in AVTOVAZ. This partnership is now extended to Nissan. Together, the three partners, who hold the end of 2009 30% of the Russian market, aim to take 40% of the market in 2015.

To implement the strategic plan AVTOVAZ, "Program Development AVTOVAZ 2020" and strengthen the presence of Renault and Nissan in Russia, fields of cooperation are extended in the following areas: sharing platforms, production, research and development (R & D), logistics, procurement, sales and marketing.

Organization called "AVTOVAZ - Renault - Nissan Supplier Quality and Development" (ARNQSD) has been created March 9, 2010 to increase the localization rate of parts in Russia for the three partners.

Sharing platforms

The Renault-Nissan and AvtoVAZ will each have access to platforms and engines developed by the other partner. All three brands - Lada, Renault and Nissan - develop a coherent product for the Russian market level. Lada also provides for a specific product plan destined to other markets outside Russia.

Research and development

Research and Development center AVTOVAZ will grace strengthens the development of synergies and cooperations with the Alliance. The partners will work to the improvement of the quality of products AVTOVAZ, sharing best practices and cost of development has increased the location of rooms, a product adaptation of the Alliance in Russian market thanks to the experience of AVTOVAZ.

Purchases

The Purchasing AVTOVAZ and Renault-Nissan Purchasing Organization (RNPO) Russia have decided to pool their teams quality suppliers and vendors for development together in a single operational unit in order to:

rapidly improve the quality of the supplier base in Russia for the mass production and new projects;

realize maximum synergies in terms of resources and best practices;

improve the internal procedures and methods; 

speak with one voice with suppliers.

With the creation of "AVTOVAZ - Renault - Nissan Supplier Quality and Development" (ARNQSD), the work will be accelerated to increase the localization rate of parts in Russia.

ARNQSD is based in Togliatti and has a branch in Moscow. Nearly 100 people from three companies work within the new organization. The Director will be linked to the Director of Purchasing and Director AVTOVAZ RNPO Russia.

Logistics

The Renault-Nissan Alliance will open its logistics in Russia AVTOVAZ to improve the quality, reliability and cost, both for the upstream flow qu'aval.

Production and quality

With their three plants in Russia (Togliatti, Moscow and St. Petersburg), the three partners will have a total production capacity of 1.3 million units per year in 2012. The System Production Alliance will gradually generalized in three plants to ensure maximum flexibility and allow a AVTOVAZ achieve the same level of quality and production costs than in other plants of the Alliance.

Commerce and Marketing

Renault and Lada work together to build a new network in Russia and neighboring republics to support the growth of both brands in these markets. A project team will be dedicated to the harmonization of parts strategy and services between the two partners.

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