Avtovaz to produce utility vehicles, vans on Renault platform in 2011
MOSCOW. Aug 17 (Interfax) - Avtovaz plans to start producing five to seven-seat utility vehicles as well as vans using the platform of France's Renault in 2011, the Russian carmaker said in a report.
Technical documentation has been compiled and a plan has been developed for setting up vehicle production at Avtovaz's plant in Togliatti with investment by both companies.
The companies have also prepared a draft contract on supplies of auto components to assemble the vehicles, including engines and transmissions.
The vehicles will be produced based on a license agreement.
Starting in 2012, Avtovaz plans to start producing its own low-cost C-class model.
The Togliatti plant has production capacity of more than 750,000 cars per year, however the plant only plans to produce 332,000 cars this year due to a drop in demand.