Renault agrees a plan to save ailing carmaker Avtovaz
By Andrew C., 30 Aug, 2010. 0 Comments
Renault Logo
Avtovaz will be saved from collapse by the team-up of Renault and the Russian government. It can be recalled that Renault bought a 25% stake in Avtovaz in February 2008. However, the ailing carmaker still needed an injection of cash to help in its debt restructuring and to fund its attempts to hold on to its 25% share of the regional new car market.
Under the deal that was signed in Paris, the Russian government will invest more than £1 billion in exchange for the transfer new technology valued at £220 million. Last year, the Russian new car market dropped by 57%, with Avtovaz bearing much of the brunt. Both Renault and Nissan expect to build value cars at Avtovaz's Togliatti plant from 2012, as well as all-new models under the Lada brand. Approximately 650,000 units of the annual production target of 900,000 units will have the Lada badge.
Latest Auto Shows
