Renault Nissan is merging its purchasing activity in Russia with local carmaker AvtoVaz in 2015. The new Avtovaz-Renault-Nissan Purchasing Organization (ARPNO) replaces the common purchasing organisation set up by the carmakers in September 2013 and makes the new entity the largest buyer in the automotive industry in Russia.
ARPNO will now manage purchases for all the three companies’ joint projects in the country, including parts, equipment and tooling, as well as indirect purchasing, including services.
The organisation will be responsible for establishing “unified RNPO [Renault-Nissan Purchasing Organisation] procedures to select and improve the local supplier base in Russia to achieve international quality, cost, delivery, development and manufacturing standards, and to assist with Russia’s continued integration into the global automobile market,” said Renault Nissan in a statement. That integration includes making AvtoVaz more of a global carmaker.
Renault Nissan has been working with AvtoVaz since 2008 when it took a 25% stake in the company and currently produces Renault, Nissan, Lada and Datsun vehicles at the Togliatti plant in Russia. Earlier this year Renault-Nissan took full control of AvtoVaz in a deal worth $742m which gave it a 67.1% stake in the Russian carmaker’s holding company Rostec which included a 74.5% controlling stake in AvtoVaz.
In a separate development, the RNPO, which handles the carmaker’s global purchasing activity recently bought a 49% stake in the common purchasing organisation with AvtoVaz and now holds a 99% stake.
ARNPO will be based in Togliatti, with branches in Moscow, Izhevsk and St. Petersburg. Venkatram Mamillapalle, purchasing vice president of AvtoVaz, is being appointed general director of unit in January 2015.
In other news this week, Yasuhiro Yamauchi has been appointed Alliance executive vice president of purchasing and chairman and managing director of RNPO. He replaces Christian Vandenhende, who has been appointed executive vice president, Quality and Total Customer Satisfaction, Renault Group.