Russian manufacturer Avtovaz is to build Nissan’s B-segment cars in its factories by 2012, according to company officials.
Avtovaz, which builds Lada cars, is 25 per cent owned by Nissan’s partner company Renault and the Nissan-Avtovaz deal falls under this arrangement.
Vitaly Vilchik, Avtovaz's acting vice president, said: “Our intention is to assemble one of the 'B' class models offered by the [Renault-Nissan] alliance in 2012.”
Nissan recently opened a factory in St Petersburg but a company source reportedly claimed its annual capacity of 50,000 units would not be enough to meet demand when the industry recovery happens.
“At Nissan they understand that the St Petersburg facility is not sufficient, they are counting on a recovery of the market,” said the source.
The Nissan deal could help Avtovaz save some the 27,600 job cuts it announced last week.