AvtoVAZ joins Renault-Nissan for collaborative procurement

20 September 2013

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21 September 2013 | Marino Donati

The Renault-Nissan Alliance has joined with Russian car manufacturer AvtoVAZ to set up a joint purchasing operation for industrial equipment, powertrains and vehicles.

The Renault-Nissan Alliance already jointly covers all purchasing for Renault and Nissan globally.

AvtoVAZ, in which Renault bought at 25 per cent stake in 2008, will jointly own the new ‘common purchasing organisation’. It is expected to generate significant savings for the three partners by achieving better supplier prices with increased volumes. 

The joint purchasing arrangement is also expected to help attract global companies to the supplier base and strengthen the competitiveness of AvtoVAZ’s Lada brand.

AvtoVAZ, which has a factory in Togliatti and a plant in Izhevsk, is targeting production of nearly 1.4 million Lada, Renault and Nissan vehicles in Russia by 2015.

Daniel Perry will be the organisation’s CEO, reporting to a committee of Renault-Nissan Purchasing Organisation managing director Christian Vandenhende, deputy managing director Yasuhiro Yamauchi, and AvtoVAZ’s vice president of purchasing Damir Kashapov.

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