Renault-Nissan alliance may grab leading position on the Russian market

Article by Christian Andrei, on November 9, 2010

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]

Topics: renault, nissan, russia

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries