The joint venture between Renault-Nissan alliance and Russian automaker AVTOVAZ has opened the new EUR400m vehicle production line in the Togliatti facility in Russia.
The new 250,000m2 facility has a capacity to manufacture 350,000 cars of Renault, Nissan and AVTOVAZ brands per year, contributing nearly 1.6 million vehicles manufactured for Russia by 2016.
Initially, the plant will manufacture two new Lada MPV models, subsequently a Nissan vehicle later in 2012, and two Renault models in 2013, all together five separate models will be manufactured, which is expected to reduce manufacturing costs.
Along with the expansion of plant in Russia, the Renault-Nissan alliance is also planning to raise their stake in AVTOVAZ.
In 2011, the alliance has sold 878,990 cars in Russia which include 578,387 Ladas.
Renault-Nissan Alliance CEO and chairman Carlos Ghosn said the collaboration is deepening every day and increasing economies of scale across the Alliance.
"It's a win-win for all parties - and the benefits keep accelerating as Russia becomes Europe's economic engine of growth,"Ghosn said.
The partnership started in 2008 after Renault acquired a 25% stake in AVTOVAZ and began the transfer of technology to AVTOVAZ manufacturing facilities.
