AvtoVAZ has chosen Renault as its strategic partner. Renault was apparently chosen ahead of GM, Fiat and Magna. S. Chemezov, head of Russian Technologies, Chairman of
the Board of AvtoVAZ, Serguei Skvortsov, President of Troika Capital Partners and Carlos Ghosn, President and CEO of Renault signed a Memorandum of Understanding (MOU) in Togliatti, Russia, on Dec 8, 2007
The partnership will see the renewal of the product range of AvtoVAZ and the sharing of technologies and know-how between Renault and AvtoVAZ.
Russian Technologies, currently representing the main shareholder of AvtoVAZ, will keep an interest in AvtoVAZ’s capital and ensure continuous support from the Russian State.
Russian Technologies and Renault will become equal shareholders of AvtoVAZ once the capital of AvtoVAZ has been restructured in the first half of 2008. Russian Technologies and Renault will control a total of 50% of the shares of the company.
The partnership will also include cooperation in relation to engines and gearboxes with a view to equip both AvtoVAZ and Renault vehicles.
This investment should also significantly contribute to enhancing Renault-Nissan Alliance’s competitive position in the Russian market.
AvtoVAZ would benefit from Renault’s contributions in relation to platforms and powertrains which are expected to help the company to renew faster and enhance the entire Lada product line.
This would also apply to AvtoVAZ’ C-segment project.
Sale volumes of Lada vehicles, in agreement with AvtoVAZ and its shareholders, will be consolidated by Renault.