Renault to invest more in Russian carmaker AvtoVAZ
By Andrew C., 30 Aug, 2010. 0 Comments
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At a news conference held recently, Russian First Deputy Prime Minister Igor Shuvalov said that he has gotten Renault's confirmation of its willingness to invest in AvtoVAZ, the troubled automaker in which it owns a 25% stake. The amount of Renault's investment would be determined after AvtoVAZ , Russia 's largest automaker and producer of the Lada brand, unveils its investment program.
Shuvalov said that Renault has a strategic interest in AvtoVAZ's development and that it is ready to invest in the company's growth. He went on to provide an outline of Russia 's strategy for the domestic automotive sector to 2020. Currently, the automotive sector is about 100 billion rubles ($3.3 billion) in debt, says Autonews. To recall, Renault paid more than $1 billion for its stake in AvtoVAZ two years ago, when Russia looked set to overtake Germany as Europe 's largest car market. Russian car sales sharply dropped this year due to the recession.
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