Russia’s Avtovaz plans new ultra-cheap car: Renault

Russian auto maker Avtovaz will launch a new ultra-cheap model of its Lada car next year, selling for 5,600 euros (7,100 dollars), its French partner company Renault said on Friday.
Avtovaz is reworking its best-known product line and
plans the new model by the end of 2011, a spokeswoman for Renault, which holds a 25-percent stake in the Russian company, told AFP.
French newspaper Liberation reported that the new car would be called the Lada Granta and be similar to Renault’s Twingo, a popular compact model.
To make it, Aftovaz is building a new production line which Renault has shown an interest in buying if the Granta is a success, raising the prospect of the car being sold outside Russia, Liberation reported.