These agreements would allow AvtoVAZ and Renault to:
- Accelerate the development of AvtoVAZ, renew and expand its vehicle range.
- Grow the Lada brand while respecting its identity, in order to maintain its leadership.
- Share technological expertise and know-how.
AvtoVAZ and Renault will share know-how and technology particularly in relation to manufacturing and marketing and with the aim of improving the attractiveness, competitiveness and overall quality of AvtoVAZ.s products.
AvtoVAZ will benefit from Renault.s contributions in relation to platforms and power trains in order to rapidly renew and enhance the entire Lada product line. The first Lada vehicle to come from this partnership could be commercialized at the end of 2009.
Sales volumes of Lada vehicles, in agreement with AvtoVAZ, will be consolidated by Renault. Consequently, Russia will become the Renault Group.s main market.
Renault shall be attributed three of the twelve seats on the Board of Directors of AvtoVAZ and will be represented by Carlos Ghosn, President and CEO of Renault, Patrick Pelata, Executive Vice President, and Thierry Moulonguet, Executive Vice President. The Renault-Nissan Alliance, created in 1999, has sold 6.16 m cars in 2007.
AvtoVAZ plans to have the world’s largest vehicle assembly plant here, with annual capacity of 1 million units more thanVW’s main plant in Wolfsburg with 725,000vehicles