Nissan’s St. Petersburg Plant Under AVTOVAZ Management: What It Means for Russian Auto Production
Russia’s AVTOVAZ is slated to oversee Nissan’s St. Petersburg site, following the transfer of Nissan’s Russian assets to FSUE NAMI. The plan envisions launching the conveyor in 2023, with AVTOVAZ taking charge of the facility and shaping its future production strategy.
When asked about how production might evolve on the Nissan site, the Russian Deputy Prime Minister and head of the Ministry of Industry and Trade stated that a new production line will appear at the former Nissan plant, and AVTOVAZ will operate it. The aim is to ensure continuity in manufacturing at the site while leveraging AVTOVAZ’s experience in the broader automotive sector.
According to Manturov, Nissan’s assets are presently owned by the United States, and their management will be conducted by AVTOVAZ. This arrangement aligns with ongoing efforts to stabilize Russia’s automotive industry while preserving existing production capabilities.
Expert opinion
Maxim Kadakov, editor in chief of Behind the Wheel, weighs in on the strategic options for the plant. He notes two potential paths in this scenario. One is to produce someone else’s car within the former Nissan facilities and gradually transition to a domestically owned production ecosystem, much like the evolution seen with historic brands. The alternative is to authorize a third-party manufacturer to operate the site under state oversight, allowing AVTOVAZ to supervise and facilitate the process on behalf of the state.
Kadakov believes AVTOVAZ is well positioned to manage this transition. He suggests that a Chinese or Iranian partner could carry out manufacturing activities, with AVTOVAZ coordinating the operations and ensuring adherence to national industrial goals. This approach would maintain the automotive production profile while enabling modernization and adaptation to the needs of the future plant operator.
The arrangement appears to mirror the broader agreement with Nissan, emphasizing a continuous automotive production focus. The ownership structure is not intended to force an immediate buyout by Nissan, allowing for a potential buyback option in the future. In this framework, the plant’s existing production capabilities can be modernized and aligned with the requirements of the new manufacturer, under state leadership.
In a historical sense, FSUE NAMI, a unit of the Ministry of Industry and Trade, previously secured Nissan’s Russian assets, including the St. Petersburg production and R&D facilities and the Moscow sales center. The agreement includes a potential buyback provision over a multi-year horizon, shaping how the site could evolve in the coming years.
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