26 Feb 2010 12:27

AvtoVAZ, Sollers agree joint development of auto-component suppliers

MOSCOW. Feb 26 (Interfax) - Russia's largest automotive plant OJSC AvtoVAZ and OJSC Sollers have inked an agreement concerning a strategic partnership aimed at boosting business efficiency, creating a competitive pool of automotive component suppliers, and developing personnel potential.

AvtoVAZ President Igor Komarov and Sollers General Director Vadim Shvetsov signed the agreement.

A joint working group will be focusing the partners' efforts in three main directions: developing suppliers and finding ways to identify those that will meet the two companies' needs; working up joint proposals for developing the Tolyatti technical part; and improving worker potential in the Russian automotive industry, which includes designing professional standards and training programs.

In mid-February, Renault group director and Vice President Christian Esteve told reporters in Tallin that AvtoVAZ and Sollers were negotiating the unification of their auto-component suppliers. Russian suppliers of components for AvtoVAZ vehicles, he said, might set up 35 joint enterprises with Renault suppliers in Russia. That many foreign companies were talking with Russian components producers about setting up joint ventures, he said.

AvtoVAZ has a plan to increase the number of its "good" components suppliers. Where it is possible, Exteve said, and even if it is not very palatable, Renault will be trying to see that Western suppliers set up JVs with Russian companies. AvtoVAZ had a thousand suppliers and sub-suppliers by the end of last year.