Renault partnership with russian automaker avtovaz benefit

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Reference no: EM132165388

"Renault's partnership with russian automaker avtovaz benefits both parites"

The AvtoVAZ car factory in the central Russian city of Togliatti is a decrepit, mile-long building where the company’s Lada sedans are turned out by 40-year-old equipment. Nevertheless, the French carmaker Renault-Nissan recently paid $1 billion for a 25 percent stake in AvtoVAZ. Even after invest- ing more millions to modernize the plant, Renault figures that Russia’s low labor and energy costs will make the plant ideal for producing the Logan lineup of cars that the firm introduced in 2004. The no- frills Logan, starting at about $9,000, has become the world’s most successful cheap car. Its partner- ship with AvtoVAZ should also help Renault appeal to Russian car buyers and capture a larger share of that country’s rapidly growing market. But AvtoVAZ will also benefit from the partner- ship, especially on the production side. A key reason the firm agreed to the deal with Renault was “the modern technology and know-how that the company will provide us,” according to Chairman Sergei Che- mezov. The partnership may also encourage global auto parts suppliers to build new, more-efficient plants near the AvtoVAZ factory.

Russian automakers are clearly behind in terms of technology versus European or American car makers. In fact the Lada is a very old model still sold today in Russia.

1. What benefit did Avtovaz receive from this partnership?

2. Who are the major players in the Russia in this category and what are their objectives?

3. Does this partnership make sense for Renault?

When you asnwer those three questiosn:DQs(modules) are important; it is especially important that you provide specific evidence, gleaned from your independent research (see below) to substantiate your views. While your opinions may be fascinating, this is an academic forum, the goal of which is to expand your knowledge regarding the topics we discuss. I want you to feel completely comfortable expressing yourself in the discussion forums and in the papers you submit, but you will be graded on critical thought -- which is demonstrated by shining the bright light of relevant research on your perceptions, assumptions, and biases. (he wants at least one source on each questions, from the library with quotation mark) APA style.

Reference no: EM132165388

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