Renault Could Increase AvtoVAZ Stake

French carmaker Renault might increase its AvtoVAZ stake in the future, Sergei Chemezov, CEO of state-owned industrial conglomerate Rostekhnologii, said in a statement. Rostekhnologii currently holds, just like Renault, 25 percent of the Russian carmaker.

"In the future, they may think about increasing the stake,"
Chemezov told news agency Prime-Tass, despite of Renault's clear statement that it doesn't intend to raise the amount of shares it holds in AvtoVAZ.

The Russian government has also explained its support for Renault in case the French manufacturer wants to gain control of a larger share. "We understand that our work to clear the debts of AvtoVAZ should be considered jointly with the potential possibilities of Renault-Nissan as an investor. Then these measures taken together make real sense," First Deputy Prime Minister Igor Shuvalov was quoted as saying by earlier this month.

On the other hand, Renault agreed to assist AvtoVAZ in its fight for survival and confirmed that it will provide technology for several new models to be launched in the next years, together with its global ally Nissan. Additionally, it will only support the shake-up process with the equivalent of its share.

"They would love us to pour in lots of money because AvtoVAZ needs money but we don't have a lot of money. We told them we cannot put more money in the joint venture," Renault Chief Operating Officer Patrick Pelata was quoted as saying by Reuters. "We're going to pay our share... It's not small money but it's not half a billion," he added.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories