The Renault-Nissan alliance has granted a license to Russia’s largest car maker AvtoVAZ to produce new types of engines from 2014, Vedomosti daily reported on Wednesday quoting AvtoVAZ head Igor Komarov.
AvtoVAZ expects engine production will reach 450,000 engines per year by 2017. The Russian company plans to supply other plants of the alliance with engines and sell them to other customers.
The deal is the first large project for the alliance to produce engines abroad, Komarov added.
Renault official told the paper that the new engine was for car production on the B0 platform. AvtoVAZ plans to start production of the Lada Largus on the platform this spring, while Nissan will start making its new Almera model in Togliatti, AvtoVAZ’s main production site, at the end of 2012.