June 27, 2013
Renault-Nissan Alliance Crossroads: Togliatti
June 27- Togliatti, Russia – Renault-Nissan Alliance CEO Carlos Ghosn visited Russia’s Motor City of Togliatti Wednesday, a crossroads for ties of the nation’s top automaker and the Alliance.
AvtoVAZ, with more than 60,000 employees, is the main brand manufacturing at the giant central Russian plant, including Renault and Nissan.
Ghosn says Togliatti is a model of global cooperation.
“AvtoVAZ offers production capacity, which is going to be the cheapest capacity that Nissan and Renault can dream of into the Russian market, so this win-win should continue to the benefits of each one of the brands, allowing us to reach 40% market share with a level of profit for each one of the brands that would have been impossible if each one was going his own way,” Ghosn said.
Last year, AvtoVAZ announced the joint venture to cooperate in automobile production and use of technologies, with shares held by the Alliance and Russian Technologies.
Expanded Alliance output pushed its world ranking by production to No. 3, after Toyota and General Motors.
Output alone of AvtoVAZ’s main brand Lada might hit 1.6 million cars by 2016, and President Igor Komarov says Alliance ties have helped facilitate best practice.
“We come upon the stage of integration with the Alliance and a stage of constant improvement and development of new cars. We are concentrating on coming closer to the standards of the Alliance, using know-how, the experience and skills of our partners. We understand that is the key,” he said.
Togliatti is undergoing a revival that is bringing cars such as the Lada Largus to market.
New designers have added flare to the 40-year-old Lada with the concept crossover XRAY, debuting at last year’s Moscow Auto Salon, making a statement on the automaker’s new direction.