Russian car manufacturer AvtoVAZ will pay a sum of 220 million Euros to Renault (who owns 25% of AvtoVAZ) to license its Logan car platform to use as underpinings for the next generation Lada car range. 100 million is for licensing rights for the platform and the remainder 120 million are for the use of 2 of Renault’s engines.
Lada is Russia’s number one selling car marque with total sales of 428,000 cars from January to August 2008. Its market lead is currently being challenged by competitors such as Hyundai, Chevrolet and Ford who are coming in with cars that are more modern, so this is a way for Lada to step it up in terms of updating their cars to modern standards.
The first Lada based on the Logan platform could go on sale as early as 2011. Shown in the picture above is a Lada Priora, an example of a current Lada model sold in Russia.