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Renault, Avtovaz mulling cooperation - Renault head

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MOSCOW, June 4 (RIA Novosti) - The president of French car giant Renault said Wednesday his company was in talks on a possible cooperation deal with Russia's no.1 carmaker, AvtoVaz (RTS: AVAZ).

Carlos Ghosn said Renault representatives had visited AvtoVaz, based in the Volga region city of Togliatti, to examine the state of the plant there and discuss forms of cooperation. But he said Moscow remained Renault's main production base in Russia.

Avtoframos, Renault's Russian subsidiary, said June 1 that an agreement with the Economic Development and Trade Ministry on industrial assembly had come into force.

Renault, which began production of Logan models in 2005, was the first foreign carmaker to sign such an agreement, under which it would import spare parts at lower tariff rates of 0%-3% instead of the usual 5%-15%.

Other foreign automakers active in Russia include Ford, which currently assembles its cars in Vsevolozhsk, outside St. Petersburg; General Motors, BMW and Kia in Kaliningrad, Russia's exclave on the Baltic Sea.

Germany's Volkswagen and Japan's Nissan are also planning to launch production in Russia soon. Russia's SeverstalAvto has signed licensing agreements with Fiat, Ssang Yong and Isuzu, while AvtoVaz and General Motors jointly manufacture the Chevrolet Niva 4WD.

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