Renault-Nissan & AVTOVAZ Create Common Purchasing Organization in Russia

Togliatti, Russia (ots/PRNewswire) -

- Jointly-owned organization to oversee a defined scope of purchasing
activities for Renault, Nissan and AVTOVAZ in Russia
- Will allow partners to generate significant savings thanks to increased
volumes and better pricing with suppliers
- Will strengthen global quality and competitiveness of LADA, AVTOVAZ's iconic
brand

The Renault-Nissan Alliance and AVTOVAZ today announced the
establishment of a common purchasing organization in Russia. This
structure will manage a defined scope of purchasing for Renault,
Nissan and AVTOVAZ joint activities related to industrial equipment,
powertrains and vehicles based on common platforms.

(Photo: http://photos.prnewswire.com/prnh/20130918/642001 )

"Common Purchasing Organization" LLC (CPO) is equally owned by
AVTOVAZ and Renault-Nissan Purchasing Organization (RNPO) on which it
will be modeled. Established in 2001, RNPO is Renault-Nissan's
largest common organization and biggest contributor to new synergies
[http://www.media.blog.alliance-renault-nissan.com/news/renault-nissa
n-alliance-posts-record-synergies-of-2-69-billion-euros-in-2012-with-
particular-gains-in-emerging-markets ] derived from cost reductions
and cost avoidance. RNPO covers all purchasing activities of both
Renault and Nissan worldwide.

Like RNPO, CPO is expected to generate significant savings for the
three partners in Russia thanks to increased volumes and better
pricing with suppliers. CPO will use the RNPO methods and standards
that have contributed to its success. RNPO [http://www.media.blog.al
liance-renault-nissan.com/news/renault-nissan-alliance-posts-record-s
ynergies-of-2-69-billion-euros-in-2012-with-particular-gains-in-emerg
ing-markets ] generated 851 million euros in new synergies for
Renault-Nissan in 2012 [http://www.media.blog.alliance-renault-nissa
n.com/news/renault-nissan-alliance-posts-record-synergies-of-2-69-bil
lion-euros-in-2012-with-particular-gains-in-emerging-markets ] , or
about a third of total synergies.

CPO will communicate a common position to suppliers on quality,
cost and delivery deadlines, as well as develop relations with
suppliers in order to increase parts localization in Russia. CPO will
attract global companies to the AVTOVAZ and Renault-Nissan Alliance
supplier base. This is expected to help upgrade the technology and
quality of Russian suppliers.

The establishment of the CPO marks a new step in the development
of the strategic partnership between AVTOVAZ and Renault-Nissan
Alliance which began in 2008 when Renault took a 25% stake in
Russia's largest automaker. CPO will stimulate the ongoing
integration of AVTOVAZ and the Alliance, strengthening the
competitiveness of the LADA brand and optimizing the production of
new vehicles under the three partners' brands.

For the full release, go to:

http://www.media.blog.alliance-renault-nissan.com/news/4485

Contact:
Renault-Nissan Alliance
Mia Nielsen
mia.nielsen@renault.com
Mobile: +33(0)6-10-83-31-33

Renault Russia
Oxana Nazarova
Tel: +7(495)775-4035

Renault SAS
Helene MAZIER
Mobile: +33(0)6-45-51-50-30

AVTOVAZ
Alexander Shmygov
Tel.: +7(8482)73-7171
press@vaz.ru

Photo:
http://photos.prnewswire.com/prnh/20130918/642001

ots Originaltext: Renault-Nissan Alliance
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