7 Jun 2010 14:20

AvtoVAZ, Renault-Nissan want local suppliers in Russia by 2012

MOSCOW. June 7 (Interfax) - When selecting suppliers for the production of new automobile models, Russia's largest automaker AvtoVAZ and Renault-Nissan will give preference to companies that are able to localize their own production in Russia by roughly 2012, a statement from the Tolyatti plant said.

This matter was on the table for a joint meeting between the auto-alliance's top managers and representatives of major world automotive-parts producers to discuss plans for the Russian automaker's development before 2020, as well as plans to revamp the company's model line and localize auto-parts production.

Taking part in the meting were representatives from Valeo, Magna Group, Mahle, Faurecia, Mefro Wheels, Calsonic Kansei, TRW, Takata, Eberspacher, Grupo Antolin, Magneti Marelli, Autoliv, and Continental. "Valeo, Autoliv, and Continental already supply AvtoVAZ with automotive components, the other firms are potential suppliers for the plant," the AvtoVAZ press service said.

During the meeting, AvtoVAZ Vice President for purchasing Damir Kashapov noted the necessity for creating "a new panel of suppliers", expanding Russia's auto-parts base and increasing the localization of components-production.

"Representatives of most of the companies at the meeting expressed firm intentions to organize the output of automotive components in Russia, including in the Samara region and Tolyatti, given conditions of optimal volumes of orders and deliveries," the statement said.

AvtoVAZ and Renault announced not long ago their intentions to put together a single purchasing organization by 2020, which would be involved in 100% of the purchases for all the alliance's production facilities in Russia. By doing so, they hope to shave 2.6% off the price of overall purchases.

Plans call for the leading component-suppliers to focus on producing for 5-10 modules. By 2020, suppliers will be providing AvtoVAZ with 21 modules. New AvtoVAZ vehicle models will be outfitted on the basis of a new panel of seventy supplier-integrators on the first level, which will account for more than 80% of shipment to the plant.

AvtoVAZ plans to start making five models - two of them Ladas - on the modified B0 platform, which is analogous to the Renault Logan and Renault Logan Pickup, by the end of next year or start of 2012.