RIA Novosti reported that investment in the production of cars on the Renault platform at AvtoVAZ will reach EUR 240 million.

Mr Grigory Khvorostyanov AvtoVAZ vice president for strategy said Japan's Nissan and AvtoVAZ itself would provide a quarter of the sum each, and Renault would provide the remaining half. He said that the ailing car giant, based in the Volga city of Togliatti, will make its contribution after obtaining loans.

The official said "By 2012 we have to implement all anti-crisis measures. The plant must cut expenses and conduct restructuring. It needs to provide for itself without reaching into the state purse."

Mr Khvorostyanov said the Russian carmaker plans to produce 445,000 cars next year against this year output of 300,000 and finally produce a net profit in 2010.

In 2008 AvtoVAZ produced some 800,000 cars. The company revenue calculated to International Financial Reporting Standards plummeted by 85.9% in the H1 of 2009 YoY with a net loss of RUB 19.6 billion.

(Sourced from RIA Novosti)