In a last-ditch effort for the Renault-Nissan alliance to take the lead in the Russian market, Carlos Ghosn is currently in talks to take control of AvtoVAZ. Erich Hauser, an analyst with Credit Suisse in London, said that if Ghosn is successful at “get[ting] Russia right,” the alliance would be “starting from a position of strength.”
Russia is one of the four largest growth markets. The Renault-Nissan alliance needs Russia since the mature markets are declining and the other three growing markets are already dominated by overseas carmakers.
The biggest carmaker in China is Volkswagen AG. Fiat S.p.A. dominates in Brazil while Suzuki Motor Corp. leads in India. Ghosn estimates that by 2015, Russian auto sales will reach 4 million.
He aims that about 40% of those deliveries will be taken over by AvtoVAZ and that it will be able to expand production by 700,000 vehicles. Data from the country's Association of European Businesses show that nine-month sales gained 18% to 1.32 million.
Ghosn said earlier that Renault-Nissan is in talks with Moscow brokerage Troika Dialog and state-owned Russian Technologies Corp., which each hold 25% of AvtoVAZ.
The alliance aims to acquire a controlling stake in Russia's largest carmaker at the suggestion of Russian Prime Minister Vladimir Putin. Currently, Renault-Nissan holds a 25% stake, valued at 12.4 billion rubles ($410 million). [via Bloomberg]