Renault-Nissan to build second engine with AvtoVAZ

BOULOGNE-BILLANCOURT, France (Reuters) - Renault-Nissan will build a second engine with Russian partner AvtoVAZ (AVAZ.ME) and aims to overcome a decline in Lada sales in a market set to overtake Germany within two years, Renault's (RNO.PA) regional boss said on Thursday. Production of a long-planned 1.6-litre engine begins this week at the AvtoVAZ plant in Togliatti and will soon expand to a second petrol engine, Bruno Ancelin said in an interview at the French carmaker's headquarters outside Paris. Renault and Japanese alliance partner Nissan are increasing local parts sourcing as they prepare to take control of the maker of Lada cars and defend a combined 30 percent market share against an encroaching Hyundai . But Renault expects the market to return to growth of about 3.5 percent next year after sliding between 6 and 7 percent to 2.8 million cars in 2013.

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