Country officials have also asked Renault, who currently holds a 25 percent stake in the company, to step in and help it survive.
"Either they (Renault) participate in funding the enterprise or we will have to agree with them on dividing up our stakes," Putin told government officials according to Reuters. "As far as modernization is concerned, we need to talk to foreign partners, Renault and Nissan. We have already given AvtoVAZ the first tranche of 25 billion rubles and have avoided diluting their (Renault) stake."
Renault replied in a positive manner and confirmed that it will support the Russian carmaker, announcing that, together with its global ally, will develop a range of five new models for the local market. Furthermore, Renault agreed to finance the company's shake-up and provide the needed technology to make its models more competitive.
"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 a few days ago. "We're going to pay our share... It's not small money but it's not half a billion," he added.