Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Renault Rebuffs AvtoVAZ Proposals

Itar-TassRenault official Luc Menard, left, sealing a $150 million deal with Moscow city official Vladimir Resin on Friday.
Renault, the second-biggest French carmaker, rejected proposals by AvtoVAZ on a joint venture, Vedomosti reported Friday, citing a letter by Renault executive vice president Patrick Pelata.

Pelata rebuffed AvtoVAZ proposals to contribute the Russian company's 30-year plant to the venture to produce 80,000 Renault Logan models, the newspaper said. According to an earlier agreement, Renault was to expand a factory that makes Lada Kalina models to 300,000 cars per year from 220,000.

AvtoVAZ vice president Alexander Pronin is now in Paris to continue negotiations, Vedomosti said.

Also Friday, Renault confirmed that it would invest $150 million to double its production capacity in Russia and generate 1,000 new jobs, citing soaring demand for its budget Logan brand.

Under an agreement signed Friday with the Moscow government, Renault will increase capacity at its Avtoframos factory in Moscow to 160,000 vehicles per year by mid-2009, the company said in a statement.

For its part, City Hall will provide additional land for the expansion, which will boost the factory work force from 2,300 to 3,300.

The decision to invest was taken due to "the success of the Logan and the potential of the Russian market," the statement said.

(Bloomberg, AP)