Renault to provide Russia’s AvtoVAZ technology rather than cash
By Andrew C., 30 Aug, 2010. 0 Comments
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Rather than cash, Renault SA will invest in financially troubled AvtoVAZ, where it owns a 25% stake, by providing technologies, a senior Russian official confirmed earlier this week. First Deputy Prime Minister Igor Shuvalov went on to say that Renault is prepared to invest in AvtoVAZ's development and provide the most advanced technologies, which will be evaluated in the most transparent way." Recently, a Renault spokeswoman told Reuters there were many ways to help AvtoVAZ, aside from offering cash.
One possibility given had been to develop models on AvtoVAZ production lines. Last Tuesday, Shuvalov gave an outline of Russia 's strategy for the domestic automotive sector until 2020. He reported that the entire sector was about 100 billion rubles ($3.3 billion) in debt. Two years ago, Renault paid more than $1 billion for its stake in AvtoVAZ, when Russia had been set to overtake Germany as Europe 's largest car market. The recession has put a damper on plans as the financial difficulties have sharply reduced Russian car sales this year.
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