The Renault-Nissan alliance and AvtoVAZ will merge their purchasing activities in Russia. The combined unit will become the largest components buyer in the country’s auto industry, Renault said in a statement.
Renault and Nissan own a 67 percent stake in the joint venture that controls AvtoVAZ, which builds Lada vehicles and is Russia's largest automaker.
The AvtoVAZ Renault Nissan Purchasing Organization (ARNPO) will begin operations next month. It will be based in Togliatti, one of the world's biggest auto plants, which builds Lada, Renault, Nissan and Datsun cars.
Venkatram Mamillapalle, purchasing vice president of AvtoVAZ, will head ARNPO, which will integrate employees from Renault, Nissan and AvtoVAZ in Russia.
Combining purchasing operations in Russia into a single entity is part of the alliance’s strategy to share the same structure worldwide for all of its operations, a Renault spokeswoman told Automotive News Europe.
Renault said the new company will help to improve the supply base in Russia to achieve international quality, cost, delivery, development and manufacturing standards.