Renault in Russia: high-quality cars cheaper than $10,000
French car makers have shown no interest in Russia’s market for quite a long period, and after a long pause, they have once again recommenced their plans for large-scale assembly of French cars in Moscow. According to the Russia-France joint-stock enterprise Avtoframos, production of Renaults at the Moscow car plant AZLK will start full swing by 2005. And the production may reach 60,000 cars per year by 2007.
Avtoframos director general Guy Bara says that currently the Renault Symbol is assembled in the network of the Russia-France joint-stock enterprise. However, the enterprise only assembles and sells cars. The car bodies and engines are supplied by a plant located in Turkey; other component parts are imported as well. It is supposed that in the nearest future, welding and a painting workshops will be added to the plant. Then, Guy Bara says the workshops will make up a complete production line, including welding and painting of the car bodies and complete car assembly. The production of Renault cars is currently being coordinated with the Russian ministries.
It is not clear yet which Renault model will be produced in Russia in 2005. Avtoframos declares its objective to produce a car for under 10,000 dollars, which would be in wide demand in Russia. Guy Bara said in an interview to Russia’s newspaper Kommersant: “It is not obligatorily that it will be the Renault Symbol. We will choose the model as soon as the production line is ready.”
Renault and the Moscow government are shareholders of the Avtoframos joint-stock enterprise; each holds 50% of the shares. Sales of new Renault cars in Russia made up 5,606 cars in 2001; the amount is expected to reach 8,000 cars in 2002.
Akhtyam Akhtyrov PRAVDA.Ru
Translated by Maria Gousseva
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