Renault to sign a rescue deal for the near-bankrupt AvtoVAZ

Article by Christian A., on August 29, 2010

The action of AvtoVAZ shareholders to rescue the near-bankrupt company came just in time. A rescue deal is set to be signed by the parties on Friday.

The signing, which is participated in by Russia's state-controlled investment group Russian Technologies, Moscow bank Troika Dialog and Renault, will coincide with Russian Prime Minister Vladimir Putin's visit to the French capital.

Russian Prime Minister's deputy chief of staff Yuri Ushakov told reporters about the parties expressed willingness to ink the agreement. Christian Esteve, leader of Renault's Eurasia management committee, is confirmed to have agreed to sign the agreement on Friday.

Earlier, Russian first deputy prime minister Igor Shuvalov had been quoted to have said that Paris talks would determine the future of AvtoVAZ. The carmaker, which is renowned for creating the Lada, owes nearly 60 billion rubles ($2.08 billion) in short-term loans.

It continues to suffer heavy losses and a slump in sales. AvtoVAZ is 25 percent owned by Renault, which paid $1 billion for the stake in the winter of 2007/08 to take advantage of what it hoped would be a fast-growing Russian market.

Russia is obviously eager for Renault to actively participate in the rescue of the company, either by sharing its technology or by building Renault cars at the AvtoVAZ plant.

Topics: renault, russia, avtovaz

If you liked the article, share on:

Comments

Recommended

Numerous images were leaked at the end of last year. While we’re privileged to have received hints about the anticipated BMW M5 F90, it didn’t give us a full and...
by - April 27, 2017
Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 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