Logan II and Sandero II production in Russia underway

The plant at Togliatti of Russian carmaker Avtovaz (Lada), a company where the French group Renault is to take over, started to produce the models Logan II and Sandero II, a source within the group told the French newspaper La Tribune, according to economica.net. The two cars are to be officially unveiled at the end of August at the car salon in Moscow. These models will be sold on the Russian market under Renault brand and not under the Romanian brand, Dacia. The decision of the French group to take advantage of the unused production facilities at Avtovaz came as the Renault plant near Moscow is already at full capacity. Lada, an Avtovaz brand, already produces the Largus model at the Togliatti plant, a compact car based on the first generation of Logan, renamed and rebadged. Besides, Nissan has produced its model Sylphy at the same plant since 2012.
At the end of 2012, CEO of the alliance Renault Nissan Carlos Ghosn, CEO of the public company Russian Technologies Sergei Cemezov and Avtovaz CEO Igor Komarov signed the final agreement allowing Renault-Nissan to take over the control share at the Russian carmaker. In principle, Renault-Nissan might take over 67.1 percent of Avtovaz shares this month, in exchange for EUR 577 million.  Last year, Avtovaz reported a net loss of RUB 7.9 billion (EUR 161 million) and the company recently announced they will terminate 13,000 jobs out of the 65,891 people who were working at the end of last year at the Togliatti plant. Over the first five months of this year, Avtovaz sales on the Russian market went down by 14 per cent to 162,700 units, meaning a market share of 15.8 per cent compared to 18.3 per cent in 2012. As regards Renault registrations in Russia, they went down by 7 per cent to 80,000 but the French group controls 7.8 per cent of the market.

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