Last year, AutoVAZ said it was looking to purchase platforms from a European auto manufacturer for use in a range of new products. Earlier today in Togliatti, Russia the search came to an end. Renault CEO Carlos Ghosn signed a Memorandum of Understanding with the head of Russian Technologies, AutoVAZ chairman Sergey Chemezov and Troika Capital Partners president Serguei Skvortsov. The MOU sets the stage for a strategic partnership that will result in technology sharing between the two automakers, with Renault providing engineering know-how, platforms, and powertrains to AutoVAZ for use in upcoming products. A particular focus will be placed on strengthening and growing the Lada brand, and Renault's marketing power will be leveraged to promote AutoVAZ product.
AutoVAZ will undergo a capital restructuring in early 2008, after which Russian Technologies and Renault will become equal shareholders in AutoVAZ, controlling a combined 50% of total shares. In addition to the obvious product benefits that AutoVAZ will reap from the Renault tech infusion, the French automaker gets to pad its annual report, as AutoVAZ sales will be consolidated under Renault. Due to AutoVAZ's volume, Russia should become Renault's largest market, and according to the attached announcement, Renault has already begun upwardly adjusting its 2009 forecast. Here's hoping for a revamped Lada Niva that combines updated tech with the spirit of the original and that can still be driven underwater if some crazy Russians decide to have a little fun.
[Source: Renault]
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Reader Comments (Page 1 of 1)
Mal Fuller @ Dec 8th 2007 10:21AM
While I have never heard of AutoVAZ, my bet is that they are now doomed to becoming the AMC of Russia. RIP AutoVAZ.
efefus @ Dec 8th 2007 10:37AM
AutoVAZ is company, which produce Ladas
efefus @ Dec 8th 2007 10:38AM
AutoVAZ is holding company, which produce Ladas
stefan @ Dec 8th 2007 10:41AM
I wonder how much the Russian mafia owns of the AutoVAZ 50%.
Jimbo @ Dec 8th 2007 11:02AM
Wasn't it reported just a few days ago that GM was about to invest more in AvtoVaz?
Avinash machado @ Dec 8th 2007 11:05AM
The Logan could be the first model to be launched under the new partnership with Renault.
mxrz @ Dec 8th 2007 11:12AM
I remember those, the Niva. Very capable all terrain vehicle. It was a POS, but it was so simplistic, repairs were quick and easy.
rgseidl @ Dec 8th 2007 12:13PM
@Jimbo -
GM and Fiat both lost out to Renault in the bidding for AutoVAZ.
@ Avinash machado -
The Logan is a Renault-designed car that are assembled at the Dacia subsidiary in Romania. While it's very basic by Western standards, it is a low-cost modern car. It is also produced under license in Iran and India, so it may indeed be rebadged as a Lada for the Russian market. A variant called the Sandero is about to be launched in South America.
LPG retrofit kits are already available for the Logan, permitting a refinery byproduct to be used for transportation.
An even better option currently under development for the Iranian market is CNG, since that country has plentiful supplies of this clean-burning fuel. So does Russia and to a lesser extent, many other emerging automotive markets.
http://www.rrc.state.tx.us/commissioners/williams/energy/images/2919957WORLDGASRESERVES.gif
Scrubbed biogas could be a viable renewable fuel option in India, where the non-scrubbed raw product is already widely used for heating and cooking in rural areas.
Jerk Face @ Dec 8th 2007 1:50PM
That was an unexpectedly educational post.
Ramiro BA @ Dec 8th 2007 8:09PM
Well...both, the Yugo and some Ladas, had Fiat origins in their designs...
pnegyesi @ Dec 9th 2007 8:40AM
Hi
Thing is, Autoblog folks are a bit behind times.
Actually there's a newer Niva around. It's called the Chevrolet Niva, produced by a GM-AvtoVAZ joint venture in Togliatti since 2003. It was set to become the 2nd generation Lada Niva, but AvtoVAZ needed a partner to finish the development process. GM stepped in and the as they say the rest is history.
Renault is already building the Logan in Russia. But there are some clever possibilities - but as I said elsewhere Renault first have to convince the Togliatti management that cooperation is a good thing.
And no, the maffia does not own any of the shares. That period has long gone. Today AvtoVAZ is mostly controlled by Rosoboronexport, a state-owned arms exporter company. It is just being reorganized to allow Renault to have its 25 per cent stake.
Someone said that both the Yugo and the Lada got Fiat elements. Yep, the Yugo or the Zastava is a derivative of the Fiat 128. The original Lada was the Soviet version of the Fiat 124. An updated version is still the most popular Lada in Russia (and Ukraine), but there are some more modern offerings. Well, it means that the latest Lada models are just about 10-12-years behind Western quality standards.
Guenther @ Dec 9th 2007 10:25PM
Nothing wrong with with old, robust technology. If someone can churn out cheap cars that are as good as a '95 Civic was, great.
Nivas were also sold in Canada for a while.