Moscow, Russia, November 25, 2013—IFC, a member of the World Bank Group, and the Renault-Nissan Alliance are joining forces to provide advice and technical support to auto parts makers in Russia, part of an effort to foster economic growth across the country.
IFC and Renault-Nissan will help suppliers improve their corporate governance, modernize their production facilities, and conserve resources. That will help parts makers meet international manufacturing standards and ensure their businesses remain sustainable over the long term. It will also support economic diversification in Russia; parts makers are important sources of jobs and many operate in the country’s more remote regions.
“Russia is a country of strategic importance for the Renault-Nissan Alliance, which has experience world-wide in increasing the standards and global competitiveness of local suppliers,” said Bruno Ancelin, Senior Vice President of Renault, Chairman of the Eurasia Region, and Managing Director of Renault Russia, speaking on behalf of the Alliance. “This agreement is a necessary step that will help enhance the Russian automotive industry and fulfill our strategic plans.”
The project is part of a wider IFC effort to support Russia’s entire automotive industry, including suppliers and manufacturers. IFC also works to improve distribution networks and support changes to the regulatory environment.
“IFC’s aim in Russia is to support the diversification of the economy and promote sustainable growth,” said Jesper Kjaer, IFC’s Regional Head of Advisory Services for Europe and Central Asia. “Our cooperation with the Renault-Nissan Alliance will help local suppliers of Russia’s fast-growing car manufacturing sector become more competitive and integrated into the global automotive supply chain."
The Renault Nissan Purchasing Organization, a subsidiary of the Alliance, will play a key role in the agreement. It covers world-wide purchases for Renault and Nissan, and helps local suppliers improve the competitiveness of their parts.
Russia became a member and shareholder of IFC in 1993. Since then, IFC has invested more than $11 billion in Russia, including $3.4 billion in syndicated loans, and has been involved in 294 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.2 billion, the fifth-largest country exposure for IFC globally.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org
About the Renault-Nissan Alliance
The Renault-Nissan Alliance is a strategic partnership between Renault (based in Paris, France) and Nissan (based in Yokohama, Japan), which together sell one in 10 cars worldwide. Renault and Nissan have been strategic partners since 1999 and sold 8.1 million cars in nearly 200 countries in 2012. The Alliance operates strategic collaborations with numerous automakers, including Germany’s Daimler, China’s Dongfeng, and with regional manufacturers such as Ashok Leyland in India. For more information, please visit: http://blog.alliance-renault-nissan.com