VAZ will create 4500 jobs in ₽200 billion

21 January 2019

Speke with AVTOVAZ will bring to the budget ₽132 billion

The investment contract provides for development in Russia (four regions) model range of cars Lada, Nissan, Renault and Mitsubishi and modernization of capacities for their production. Speke will be implemented by the Alliance, consisting of OOO "Lada Izhevsk", "Renault Russia", OOO "Nissan manufacturing Rus" and OOO "Mitsubishi motors Rus".
PJSC "AVTOVAZ" has announced the signing of a special investment contract (SPIC) with the Ministry of industry and trade of the Russian Federation. The purpose of SPIK will be support in Russia brands of the Alliance, respectively, including the brands LADA, Renault, Nissan, Datsun and Mitsubishi, as well as upgrading their production capacity.

In the framework of Spica PJSC "AVTOVAZ" will become the main investor in the group of partners of LLC "Izhevsk LADA" (part of the AVTOVAZ Group), CJSC "Renault Russia", OOO "Nissan manufacturing Rus", LTD. "Mitsubishi motors Rus", which are included in the Alliance Renault-Nissan-Mitsubishi. The contract also involved the government of Samara region, Republic of Udmurtia, Moscow, St. Petersburg and Kaluga region.

Under the 10-year contract AVTOVAZ will invest around ₽70 billion, which will create 2300 new jobs and together with the Alliance partners will enhance the depth of localization of materials, parts and components, will allow to introduce new technologies, develop research activities in Russia and increase exports. According to the data released before 2026 AVTOVAZ will launch a series of eight new and nine redesigned models. 

According to the company "Renault Russia" Renault model Arkana, which debuted at MIAS 2018, will be produced at the plant in Moscow, and its 1.33-litre motor within the Speke of the Alliance will be located in Tolyatti  

According to the President of JSC AVTOVAZ, Mr. Yves Karakatsanis ACNP will support the company in achieving its ambitious medium-term plan: "In the coming years, the Group AVTOVAZ plans to update the lineup LADA. In this situation, Speke provides long-term predictability, which is crucial for our activities, and will contribute to the development of the whole automotive industry in Russia."

Deputy Chairman of AVTOVAZ Board of Directors Mr. Nicolas Moore noted that the Russian market was the key to the success of Groupe Renault and AVTOVAZ. He said: "I am delighted that the Government has given AVTOVAZ, and all the Alliance partners in Russia the opportunity to sign Speke, which implements our commitment to developing its activities in Russia."

Chairman of the Board of Directors of AVTOVAZ Sergey Skvortsov confirmed that on 24 December 2018 provisions Spica approved by the extraordinary meeting of the Board of Directors of the company: SPIK is a great opportunity for AVTOVAZ and its Alliance partners continue to invest in new projects and increase localization and exports, which are crucial for the future of the automotive industry of the country."

Light delivery van Renault Dokker Van and passenger wagon based on it will go into the series under the brand LADA (instead of out of the LADA Largus)  

The head of the region Dmitry Azarov, said that guaranteed private investment in Speke on the development and modernization of production of cars of brands LADA, Renault, Nissan and Mitsubishi will really make no ₽70 billion, and much more – at least ₽200 billion will be invested in new production at AVTOVAZ, creating an additional 4.5 thousand jobs. It is expected that over a 10-year validity period of the list the amount of tax revenues to the Russian budget from the project will exceed ₽132 billion.