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Renault-Nissan, AVTOVAZ Join to Ford ARNPO in Russia

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Renault-Nissan and AVTOVAZ will join forces to form ARNPO in 2015

Starting at the beginning of 2015, the Renault-Nissan Alliance and AVTOVAZ will merge to become the AVTOVAZ-RENAULT-NISSAN Purchasing Organization (ARNPO), which will be responsible for regulating all purchasing activities in Russia.

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ARNPO will step in for the previously-established Common Purchasing Organization (CPO), which has served the same function since its formation in September 2013. The Renault-Nissan Purchasing Organization (RNPO) bought into CPO by grabbing a 49% stake from AVTOVAZ. RNPO now owns a 99% stake in CPO, which means it will officially become ARNPO. Letters!

ARNPO’s responsibilities will include direct and indirect purchasing for AVTOVAZ, Renault, and Nissan products; ensuring supplier quality; and establishing uniformity in procedures with regards to quality, cost, delivery, development, and manufacturing standards.

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Renault currently owns a 67.13% majority stake in AVTOVAZ, which produces LADA, Renault, Nissan, and Datsun vehicles at its Togliatti production plant. ARNPO will also call Togliatti its headquarters while operating branches in Moscow, Izhevsk, and St. Petersburg. Venkatram Mamillapalle, purchasing vice president of AVTOVAZ, will be appointed general director of ARNPO at the beginning of next month.