Renault, Nissan, AvtoVAZ Combine Purchasing in Russia

The Renault-Nissan alliance and OAO AvtoVAZ have formed a new organization to handle purchasing in Russia for all three companies.

AvtoVAZ-Renault-Nissan Purchasing Organization will be headquartered in Togliatti, Russia, with offices in Izhevsk, Moscow and St. Petersburg. AvtoVAZ Vice President Venkatram Mamillapalle will head the new organization.

ARNPO will replace and expand upon the Common Purchasing Organization, which was set up by the three carmakers last year to handle purchasing only for their joint projects. The new group will buy all components, tooling, equipment and services for the three companies in Russia. It also will develop a unified supply chain and take responsibility for supplier quality.

Renault acquired a 25% stake in AvtoVAZ in 2008. Today the Renault-Nissan alliance owns 67% of the venture which controls AvtoVAZ. All three companies produce vehicles at their factory in Togliatti.