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14. June 2010

AvtoVAZ Renault Nissan wants local suppliers in Russia

Interfax reported that when selecting suppliers for the production of new automobile models, Russia largest automaker AvtoVAZ and Renault-Nissan will give preference to companies that are able to localize their own production in Russia by roughly 2012.

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

Taking part in the meeting were representatives from Valeo, Magna Group, Mahle, Faurecia, Mefro Wheels, Calsonic Kansei, TRW, Takata, Eberspacher, Grupo Antolin, Magneti Marelli, Autoliv and Continental.

The AvtoVAZ press service said "Valeo, Autoliv and Continental already supply AvtoVAZ with automotive components and the other firms are potential suppliers for the plant."

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

The statement said "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."

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 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 to 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.

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