Renault-Nissan Alliance and Avtovaz to create new, merged purchasing organisation in Russia

– AVTOVAZ-RENAULT-NISSAN  Purchasing Organisation (ARNPO) to manage purchasing of all three partners in Russia, starting January 2015

– ARNPO replaces Common Purchasing Organisation established by the three partners in 2013, and the individual purchasing departments of AVTOVAZ, Renault and Nissan in Russia

– ARNPO to become largest buyer in Russia’s auto industry; will help integrate AVTOVAZ further into the global industry

Renault-Nissan-Alliance-and-AVTOVAZ

TOGLIATTI, Russia —— Renault SA, Nissan Motor Co., Ltd., and AVTOVAZ will merge their purchasing activities in Russia, effective January 2015.

The new AVTOVAZ-RENAULT-NISSAN Purchasing Organisation, or ARNPO, will manage the purchasing activities of all three partners in Russia under the international standards of the Renault-Nissan Purchasing Organisation (RNPO). Established in 2001, RNPO handles all purchasing activities of Renault and Nissan worldwide and is the biggest contributor to Renault-Nissan synergies.

ARNPO will take over the activities of Common Purchasing Organisation (CPO), an equally-owned company established by RNPO and AVTOVAZ in September 2013 to manage purchases for the three companies’ joint projects in Russia. Recently became an affiliate of RNPO following RNPO’s purchase of a 49% stake in CPO from AVTOVAZ. RNPO’s stake in CPO now stands at 99%. RNPO’s share increase in CPO has been approved by Russia’s Federal Anti-monopoly Service. In January, CPO will change its name to AVTOVAZ-RENAULT-NISSAN Purchasing Organisation (ARNPO) and integrate the individual purchasing departments of the three partners in Russia as well.

LATEST MILESTONE IN RENAULT-NISSAN ALLIANCE & AVTOVAZ PARTNERSHIP

The establishment of ARNPO marks the latest milestone in the deepening partnership among the three companies, which began in 2008 when Renault took a 25% stake in Russia’s largest automaker. Today, the Renault-Nissan Alliance owns a 67.13% stake in the joint-venture which controls AVTOVAZ. Together they produce vehicles at the Togliatti plant, one of the world’s largest auto plants, under four brands: LADA, Renault, Nissan and Datsun.

Thanks to the combined purchasing volume of Renault, Nissan and AVTOVAZ, ARNPO will become the largest buyer in Russia’s auto industry and will help integrate AVTOVAZ further into the global industry.

ARNPO’s main responsibilities will include:

– Purchasing of parts, equipment and tooling, as well as indirect purchasing, including services, for  AVTOVAZ, Renault and Nissan;

– Supplier quality and development;

– Establishing unified RNPO procedures to select and improve the local supplier base in Russia to achieve international quality, cost, delivery, development and manufacturing standards, and to assist with Russia’s continued integration into the global automobile market.

ARNPO will be structured as a limited liability company headquartered in Togliatti, with branches in Moscow, Izhevsk and St. Petersburg. Venkatram Mamillapalle, purchasing vice president of AVTOVAZ, will be appointed general director of ARNPO in January 2015. The new structure will integrate employees from Renault, Nissan and AVTOVAZ in Russia.

About the Renault-Nissan Alliance

The Renault-Nissan Alliance is a strategic partnership between Paris-based Renault and Yokohama, Japan-based Nissan, which together sell one in 10 cars worldwide. The companies, which have been strategic partners since 1999, sold 8.3 million cars in nearly 200 countries in 2013. The Alliance also operates strategic collaborations with automakers including Germany’s Daimler, China’s Daimler, and India’s Ashok Leyland and has a majority stake in the joint venture which owns Russia’s top automaker, AVTOVAZ.

About AVTOVAZ

AVTOVAZ is Russia’s largest automaker and maker of the iconic LADA model. The company has manufacturing plants in Togliatti and Izhevsk with a combined production capacity of one million units per year. AVTOVAZ is a multibrand manufacturer and builds Renault, Nissan, Datsun and LADA cars. AVTOVAZ employs around 52,000 people and has manufactured more than 28 million LADAs since 1970. AVTOVAZ has a network of 400 official LADA dealers.

[Source : Renault]

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