Top managers from Bosch are visiting the Russian town of Yaroslavl, where one of the Russian carmaker's engine plants is based. The German company could assist AvtoVAZ in developing a new medium-size diesel engine and other projects.
Bosch has been AvtoVAZ's partner and a supplier of car components since the launch of the first Lada model. The new agreement replaces a 2001 cooperation agreement between the two companies.
AvtoVAZ currently has market capitalization of $1.43 billion. The company is based in the Volga region town of Tolyatti and produces around a million cars per year under the Lada brand. In 2005, the carmaker's domestic sales rose 3.7% to 648,000.
Last year, Rosoboronexport, Russia's main national arms exporter, assumed control over AvtoVAZ when its officials took the posts of board chairman and general director of the company.
