Renault to Produce 50,000 Cars in Russia in 2006

GENEVA – OAO Avtoframos, the Moscow-based car plant controlled by Renault SA and the city of Moscow, plans to make 50,000 Renault Logans this year.

The plant assembled its first 10,246 Logans in 2005.

"Today, we are producing each day 185 cars in Moscow," says Luc-Alexandre Menard, Renault senior vice president-Euromed region, which includes Russia.

Currently, Avtoframos operates two shifts employing 1,750 workers. A third shift is to be added in September, which will create 400 new jobs.

"We intend to reach a local content of 30%-40% by the end of this year," Menard says.

Avtoframos will purchase more stamped parts from Moscow-based AMO ZIL than originally expected.

"We decided to increase the number of parts given to ZIL to reduce the part transport from Romania to Moscow," Menard says.

Renault also has had a good experience sourcing plastic parts in Russia, he says.