In the spring of 2003, the Moscow government and Renault signed an agreement to produce Renault-Logan cars on the premises of the AZLK auto plant, the maker of the Moskvitch brand. The factory began production on April 5.
Avtoframos, a joint venture owned by Renault (76%) and the City of Moscow (24%), said the factory had produced about a thousand cars to date. The cars are assembled using both imported and domestic components. However, the company wants to switch completely to Russian components to reduce the price of the car significantly. The price of the Renault-Logan ranges from $8,999 to $12,000 depending on the model, the company said.
The factory employs about 1,500 people. The company intends to increase output to 60,000 cars a year and eventually build up to 120,000.
Renault has invested $120 million in Avtoframos.
