Renault-Nissan alliance to asume control of AvtoVAZ this month

Article by Christian Andrei, on June 30, 2011

The alliance of Renault SA and Nissan Motor Co. is aiming to reach a deal next month to assume a dominant ownership of OAO AvtoVAZ, according to two people who are familiar with the situation. AvtoVAZ is the largest vehicle manufacturer in Russia. Currently, Renault owns 25 percent of the Russian automaker while Nissan doesn’t have any at all.

Renault may increase its ownership to 35 percent, giving Nissan 15 percent, the alliance’s spokesperson Rachel Konrad disclosed citing the comments made by Carlos Ghosn, CEO of both Nissan and Renault, to analysts during a presentation last Monday.

The additional 10 percent share of Renault and the 15 percent share of Nissan would be worth around $415 million, based on the current market value of AvtoVAZ.

Previously, the parties have announced that they are targeting the end of 2011 to conclude the negotiations. Also, the alliance is negotiating to buy the shares that Troika Dialog and Russian Technologies Corp. hold, both of which have 25 percent.

Spokesperson Valery Kartavtsev for Russian Technologies has yet to comment regarding the matter. A Troika Dialog spokeswoman did not comment, too. AvtoVAZ rules the vehicle market in Russia with its Lada brand with a 24 percent market share.

With the Russian automaker, the alliance aims to strengthen the combined market share of the three brands to 40 percent. Konrad disclosed that the alliance is in talks with the Russian automaker privately and that details will not be disclosed.

Topics: renault, nissan, avtovaz

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
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