The revised agreement lowers state investment aid for the factory and penalizes the auto maker €14.25 million for missing production bogeys set in the original deal.
The auto maker adds volume production of a 5-door VW Up! today, followed by 5-door versions of the other models in its New Small Family lineup – the Skoda Citigo and SEAT Mii.
The factory is scaling back production even though its main product, a facelifted version of the Renault Twingo hatchback, only reached dealerships earlier this year.
The Finnish contract assembler, which also produces the Fisker Karma, will provide the project management and a wide range of engineering and manufacturing services.
Renault already announced plans to manufacture its K4 1.4L and 1.6L 4-cyl. gasoline engines at AvtoVAZ, and the decision to add the Nissan H4 engine to the mix is expected to come in the next few days.
The new sedan, engineered in Japan, the U.K. and Russia, will be the first Nissan model manufactured by AvtoVAZ as a part of the Renault-Nissan Alliance.
The JV initially will assemble up to 4,000 vehicles from semi-knocked-down kits this year. Plans call for the eventual production of 50,000 vehicles on two shifts annually or 70,000 on three shifts.