Renault-Nissan mulls luxury car assembly in Far East
MOSCOW. March 16 (Interfax) - The Renault-Nissan Alliance, which has since 2010 been thinking about establishing car assembly in Russia's Far East, is considering the option of luxury car production in this region in the long-term.
"This is not a bad idea, but the priorities are slightly different now: the priority is to develop and upgrade Avtovaz and increase capacity at our Moscow plant [Renault plant Avtoframos]. Naturally we have certain limitations in terms of personnel and finances. One example I can give is that when we decorate a house we also want to do lots of different details, renovations, put interesting pieces in place. Often we cannot do everything because it is financially and technically difficult," Bruno Anselen, the head of Renault in Russia, told Interfax in comment on plans for the Far East project.
The alliance can produce luxury cars in the Far East which will enable imports of different parts from Japan and Korea and full-cycle production can be set up for supplies to Central Russia, he said.
The Primorye territorial administration said in January 2011 that a Renault-Nissan Alliance delegation had visited the territory to consider setting up a car assembly plant in the area.
Prime Minister Vladimir Putin invited the Renault-Nissan Alliance to participate in establishing production in the Far East in March 2010. "We have developed production in St. Petersburg together. We invite you to take part in setting up a similar company in the Far East," Putin said at a meeting with Renault-Nissan CEO Carlos Ghosn. The prime minister said he was sure the plant would be in high demand.
"The people that live there are used to Japanese cars and Nissan will be very welcome there," Putin said.
Renault-Nissan Alliance and Avtovaz companies in Russia are located in St. Petersburg (Nissan), Moscow (Renault), Togliatti (Avtovaz) and Izhevsk (IzhAuto, which is managed by the United Automobile Group).