OREANDA-NEWS. The automobile giant of Russia, AvtoVAZ, has approved the launch of new project to produce a C-class car designed by Canadian Magna. But the partners will probably change one of the key provisions of the feasibility study and avoid constructing a new carmaker. The saving is estimated at ?500 million at the minimum.

The BOD’s Strategy Committee of AvtoVAZ sanctioned on Monday the manufacturing production of a new car of C-class platform. Designed by Canadian Magna, this car will have the basic price of $10,000 to $12,000. “In principle, AvtoVAZ has approved the feasibility study presented by Magna,” said Boris Aleshin, who heads the Strategy Committee in addition to being the chief of Russia’s Federal Agency for Industry, Rosprom.

At the same time, AvtoVAZ urged Magna to elaborate the feasibility study in part of “further reducing investment burden of the project,” said a source at AvtoVAZ on condition of anonymity. “The partners may abandon creation of production in the open country,” Aleshin said declining to provide more details.

In the next move, Magna is expected to reply whether the production could be arranged at today’s facilities of AvtoVAZ, the anonymous source specified. Russia’s carmaker may find it too expensive to construct a new plant and reject this option. Arranging production at AvtoVAZ “will relive the works and Magna from excessive investments in the infrastructure” and save at least ?500 million, the source explained.