Renault to Support AvtoVAZ with Technology

Following Russia's public comments that demanded Renault to step in and help troubled local automaker AvtoVAZ, the French manufacturer yesterday said it will indeed support the Russian company but only with technologies. This means Renault would not invest cash in AvtoVAZ but Russia has already expressed, through the voice of Prime Minister Vladimir Putin, its willingness to provide financial support.

"They confirm that they are ready in invest in AvtoVAZ's development and provide the most advanced technologies, which will be evaluated in the most transparent way," First Deputy Prime Minister Igor Shuvalov told reporters according to Reuters.

AvoVAZ, which is 25 percent owned by Renault, is said to need around $2.33 billion to start restructuring and get through the crisis. Renault agreed, after a series of negotiations with Russian officials, to provide support to the ailing car manufacturer.

"The most important thing is that Renault has confirmed strategic interest in the development of Avtovaz," Russian First Deputy Prime Minister Igor Shuvalov said earlier this week. "Renault is ready to invest in Avotvaz," he added.

Vladimir Putin has also emphasized that Renault is willing to help AvtoVAZ but up until now, no specific details on the help to be provided have been released.

"Our main desire is to remain your partners. I think that all decisions taken by AvtoVAZ are very painful but necessary. You can rely on Renault. We feel socially responsible and that goes for AvtoVAZ's business plan too," he said after a meeting with Renault Senior Vice President Christian Esteve. "We will work out a new model line for AvtoVAZ. For that we need good parts suppliers."