Source Pravda.Ru

New Renault Models to Be Produced in Moscow

France's major car maker Renault will start producing its new models in Moscow beginning 2005. The agreement to that effect was signed by Moscow Mayor Yury Luzhkov and Renault President Louis Schweitzer in Moscow Wednesday.

The new production line will be built at the Avtoframos joint venture, which was established in 1998. Renault owns 62% of the venture's shares, the other 38% belong to the Moscow government. The factory has thus far been assembling cars of French-made completing parts only.

The new model is being designed in France. It has been code-named X-90, according to Mr Schweitzer. The car will be adapted to Russian conditions and will be a good combination of high quality and a reasonable price of about US$10,000, said the Renault chief executive. The company is going to invest US$250 million to build the production line hoping to recoup the invested funds by as early as 2007. The line's initial capacity will be 60,000 cars a year and will be boosted up to 120,000 in the event of a favourable development.

Mr Luzhkov unveiled the Moscow government's decision to grant privileges to the French car maker and promote the enterprise's profitability. The government will cut the land lease charge and the space rental. Apart from that, the city authorities will build infrastructure free of charge and aid in launching an advertising campaign.

© &to=http://www.rian.ru' target=_blank>RIAN

Comments
Russia to respond with military-strategic blow to new USA's sanctions
Putin in Austria: Europe doesn't like Russia very much, but it is fed up with USA too
Putin in Austria: Europe doesn't like Russia very much, but it is fed up with USA too
Peculiarities of Russian sex
Russia must build strong Orthodox coalition in Europe to defeat the West
Ukraine dreams of what it can do to Crimea after winning war with Russia
Putin in Austria: Europe doesn't like Russia very much, but it is fed up with USA too
Putin in Austria: Europe doesn't like Russia very much, but it is fed up with USA too
Aretha Franklin: A colossus, a woman, a lady, a light and a soul
The Sham called Democracy
The Sham called Democracy
Ukraine dreams of what it can do to Crimea after winning war with Russia
Aretha Franklin: A colossus, a woman, a lady, a light and a soul
Ukraine dreams of what it can do to Crimea after winning war with Russia
The Sham called Democracy
Ukraine dreams of what it can do to Crimea after winning war with Russia
Ukraine dreams of what it can do to Crimea after winning war with Russia
Ukraine dreams of what it can do to Crimea after winning war with Russia
Default more likely to hit American, rather than Russian economy
The Sham called Democracy
The Sham called Democracy