Renault-Nissan & AVTOVAZ Create Common Purchasing Organization in Russia

AsiaNet 54321

TOGLIATTI, Russia, Sep 18, /PRN=KYODO JBN/ --

    - Jointly-owned organization to oversee a defined scope of purchasing

      activities for Renault, Nissan and AVTOVAZ in Russia

    - Will allow partners to generate significant savings thanks to increased

      volumes and better pricing with suppliers

    - Will strengthen global quality and competitiveness of LADA, AVTOVAZ's

      iconic brand

    The Renault-Nissan Alliance and AVTOVAZ today announced the establishment

of a common purchasing organization in Russia. This structure will manage a

defined scope of purchasing for Renault, Nissan and AVTOVAZ joint activities

related to industrial equipment, powertrains and vehicles based on common

platforms.

    (Photo: http://photos.prnewswire.com/prnh/20130918/642001 )

    "Common Purchasing Organization" LLC (CPO) is equally owned by AVTOVAZ and

Renault-Nissan Purchasing Organization (RNPO) on which it will be modeled.

Established in 2001, RNPO is Renault-Nissan's largest common organization and

biggest contributor to new synergies

[http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-alliance-

posts-record-synergies-of-2-69-billion-euros-in-2012-with-particular-gains-in-em

erging-markets ] derived from cost reductions and cost avoidance. RNPO covers

all purchasing activities of both Renault and Nissan worldwide.

    Like RNPO, CPO is expected to generate significant savings for the three

partners in Russia thanks to increased volumes and better pricing with

suppliers. CPO will use the RNPO methods and standards that have contributed to

its success. RNPO  

[http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-alliance-

posts-record-synergies-of-2-69-billion-euros-in-2012-with-particular-gains-in-em

erging-markets ]

generated 851 million euros in new synergies for Renault-Nissan in 2012

[http://www.media.blog.alliance-renault-nissan.com/news/renault-nissan-alliance-

posts-record-synergies-of-2-69-billion-euros-in-2012-with-particular-gains-in-em

erging-markets ], or about a third of total synergies.

    CPO will communicate a common position to suppliers on quality, cost and

delivery deadlines, as well as develop relations with suppliers in order to

increase parts localization in Russia. CPO will attract global companies to the

AVTOVAZ and Renault-Nissan Alliance supplier base. This is expected to help

upgrade the technology and quality of Russian suppliers.

    The establishment of the CPO marks a new step in the development of the

strategic partnership between AVTOVAZ and Renault-Nissan Alliance which began

in 2008 when Renault took a 25% stake in Russia's largest automaker. CPO will

stimulate the ongoing integration of AVTOVAZ and the Alliance, strengthening

the competitiveness of the LADA brand and optimizing the production of new

vehicles under the three partners' brands.

    For the full release, go to:

    http://www.media.blog.alliance-renault-nissan.com/news/4485

    Contact:

    Renault-Nissan Alliance

    Mia Nielsen

    mia.nielsen@renault.com

    Mobile: +33(0)6-10-83-31-33

    Renault Russia

    Oxana Nazarova

    Tel: +7(495)775-4035

    Renault SAS

    Helene MAZIER

    Mobile: +33(0)6-45-51-50-30

    AVTOVAZ

    Alexander Shmygov

    Tel.: +7(8482)73-7171

    press@vaz.ru

SOURCE: Renault-Nissan Alliance