Russia is the only Alliance market where both M0 models like Logan, Duster and Sandero branded as Renault and Lada and the new low-cost Datsun brand relaunched by the Nissan Group are sold.

“The new region allows us to have a more compact perimeter and synergies will be easier to attain. All the three brands are internationally important,” Kugler said.

Kugler, the former Euromed boss became Renault’s head of operations for the Eurasia region this summer, after Renault decided to change its organization by regions. Euromed included only Eastern Europe and Africa, while Eurasia only the former Soviet countries. Now Eurasia includes Romania, Turkey, the Republic of Moldova and Bulgaria (previously part of Euromed) besides Russia and the Commonwealth of Independent States members.

Logan and Sandero are already available in Russia and the AvtoVaz plant in Tolyatti assembles the Lada Largus, a previous generation Logan MCV. Datsun uses the Lada platform and Nissan Almera, also assembled at AvtoVaz uses the Logan platform. It is in the company’s best interest to have a common platform, Jean-Christophe Kugler said.

Vincent Cobee, head of Datsun and member of the board of directors at AvtoVaz, says the Renault-Nissan Alliance plans to expand the segment of affordable cars with the three brands.

Datsun will provide a modern Japanese quality, while Lada will remain a powerful Russian brand and Renault comes with a European image, so the segment will grow in Russia, Cobee added.

Datsun models are currently using a Lada platform and the components come from the AvtoVaz plant in Tolyatti, though some components of the brake system come from Dacia, Vincent Cobee said.

With the move of Romania to the Eurasia region, the Mioveni plant is no longer in the same region as the plant in Tangiers, Morocco, its main rival when it comes to the assembly of Dacia models for the European market. Tangiers has reached the same level and competitiveness as Mioveni in terms of costs, but is not working at peak capacity.  When that happens, costs will drop, Kugler said.

(English version by Loredana Fratila-Cristescu)