According to the news source, the new joint venture is expected to make 300,000 vehicles annually by 2015. While AvtoVAZ will provide 25% of the funding, the remaining funds will come from Renault's alliance with Nissan.

The joint partnership was necessitated following the Russian government's demands for aid in AvtoVAZ's overhaul to forestall dilution of Renault's stake in AvtoVAZ. Previously, Renault acquired its holding in AvtoVAZ for $1 billion. While the Russian government owns 25% through Russian Technologies, another 25% is controlled by Troika Dialog.

As part of the partnership, Renault plans to offer its technology to help AvtoVAZ modernize its production. Also, Renault will help develop a joint platform, including chassis and major parts, based on its low-cost Logan car.

Renault, Nissan and AvtoVAZ will each launch new vehicles based on the joint platform in 2012. However, the French carmaker is likely to develop a new model exclusively for the Russian car market, the report said.

A service of YellowBrix, Inc.