The company will be jointly owned by Avtovaz and Renault-Nissan Purchasing Organization (RNPO) on which it will be modelled. Dubbed Common Purchasing Organisation (CPO), the company will manage a defined scope of purchasing for the brands related to industrial equipment, powertrains and vehicles based on common platforms.

Using RNPO strategies, the company is expected to generate significant savings for the three partners in Russia thanks to increased volumes and better pricing with suppliers.

Daniel Perry has been appointed CEO of the new organization and will be based at the company’s headquarters in Togliatti, Samara Oblast.

Avtovaz and Renault-Nissan have been strategic partners since 2008 when Renault took a 25% stake in Russia’s largest automaker and the Renault-Nissan alliance is currently in the process of taking a controlling stake in the firm.