Renault to Make New Model in Russia
Renault plans to assemble its new Sandro model, a five-door hatchback based on its budget model Logan, at its Avtoframos plant in Moscow. The Logan is also assembled at the Avtoframos plant. Assembly of the Sandro, with both gasoline and diesel engines, will begin in late 2009. The company has not said how many of the new car it plans to produce. Sources say that it may make 80,000-100,000 vehicles per year, which would use half of Avtoframos’ capacity. One source says, however, that the plant’s capacity will be increased next year to 190,000 vehicles. Officially, Renault plans to increase the plant’s capacity from the current 80,000 vehicles to 160,000.
Renault has been talking about expanding the capacity of Avtoframos and creating another model based on the Logan since 2005. The expansion at Avtoframos is estimated to cost $150 million. They note at the Ministry of Economic Development and Ministry of Industry and Trade that Avtoframos has yet to make amendments to its investment agreement for the industrial assembly of automobiles.
Observers say that the Sandro is likely to cost between $13,000 and $15,000, that is, more than the Logan. It would thus compete with AvtoVAZ models such as the Lada Priora (starting price $13,000), Kalina ($12,000) and Lada 110 models ($11,000). That price segment is one of the most popular in Russia. Renault owns a blocking (25-percent) package in by AvtoVAZ. A seven-passenger station wagon based on the Logan is made by AvtoVAZ.
www.kommersant.com
All the Article in Russian as of May 16, 2008
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