Renault-Nissan finalizes joint venture deal for Russian expansion

Article by Anita Panait, on December 12, 2012

Renault-Nissan has finalized an agreement to expand in Russia, with an investment of around $742 million in a joint venture that will control local carmaker AvtoVAZ. According to Renault-Nissan chief executive Carlos Ghosn, the agreement, signed Wednesday, will accelerate the carmaker’s "Russian market offensive."

Renault-Nissan’s joint venture with Moscow state company Russian Technologies represents a step up for the carmaker, which has been attempting to penetrate the Russian market for four years. Under the agreement, which will be completed by mid-2014, Renault-Nissan will invest RUR23 billion ($742 million) to take control of AvtoVAZ through a 67.13-percent stake in the joint venture by mid-2014.

Russian Technologies will own 32.87 percent of the joint venture. The joint venture will then acquire 74.5 percent of AvtoVAZ. As part of the deal, Renault-Nissan will occupy eight seats on an expanded board of 15 members, up from 12. Renault-Nissan investment comes as vehicle sales in Russia have slowed down. Car sales in November were flat as Russians deferred spending due to a slowdown in the country's economy.

Topics: renault, nissan, russia

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 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