Renault Opens New Assembly Plant in Moscow

MOSCOW April 5, 2005; The AP reported that French automaker Renault SA opened an assembly plant in the Russian capital Tuesday for its no-frills Logan model in a move aimed at increasing the company's sales in Russia. The plant will be working at full capacity in 2006, said Louis Schweitzer, Renault's chairman and chief executive.

"Our task is to be represented in all markets around the world," Schweitzer said. "The Russian market is dynamic."

Avtoframos, a joint venture between Renault and the Moscow city government, has the capacity to make 60,000 cars a year and is equipped to weld, paint and assemble vehicles.

The cars will go on sale in Russia in September, said Jean-Michel Jalinier, vice president for Renault in Russia and the Commonwealth of Independent States. Starting price will be between $8,999 and $12,099.

Avtoframos has so far signed contracts with five Russian companies to supply components, Jalinier said.

Renault also plans to introduce a car credit program in Russia in 2006 to make Logan more affordable for Russian consumers. Renault said its investments in Avtoframos total $250 million.