Renault denied it was in talks with AvtoVAZ to boost its stake
By Andrew, 31 Oct, 2010. 0 Comments
2011 Renault Laguna Facelift
A denial was issued by Renault on news that it is in discussions with Russia's Troika Dialog about buying the bank's stake in AvtoVAZ, Russia's largest automaker. Renault CEO Carlos Ghosn was earlier quoted by the Russia Today television station to have said that Renault and alliance partner Nissan plan to buy the bank's stake in AvtoVAZ, giving the alliance 45% of AvtoVAZ. Last Wednesday, a Renault spokesman denied the report.
Troika owns slightly more than 20% of AvtoVAZ, the maker of Lada cars. Meanwhile, Renault has a 25% stake. Renault and Nissan are planning to produce their own models at AvtoVAZ's sprawling Togliatti plant.
Demand for cars in Russia is increasing once more after the crisis ignited a drop in car sales last year. In the first half of this year, AvtoVAZ returned to profit, earning 3.1 billion rubles, aided by state aid and a market improvement. It had posted a loss of 19.6 billion rubles in the same period last year. [via autonews - sub. required]
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