Renault Nissan and Russian Technologies have announced a new JV with AVTOVAZ, which will ensure that new products are launched and technologies are transferred to AVTOVAZ. AVTOVAZ is Russia’s largest auto manufacturer, and the new alliance which is called Alliance Rostec Auto BV will ensure that Renault Nissan retains a majority stake giving them control over AVTOVAZ besides controlling share of the LADA brand.
This new partnership agreement was announced by Carlos Ghosn, CEO and Chairman of Renault Nissan at a ceremony held in Moscow along with Sergey Chemezov, General Director of Russian Technologies and Chairman of the Board of AVTOVAZ along with Igor Komarov, President of AVTOVAZ.
Joint venture will benefit all 3 parties concerned – Renault, Nissan and AVTOVAZ, accelerating their growth in the Russian markets. Renault Nissan will be investing US$ 742 million which will give them 67.13% of the joint venture by 2014. Individually, Renault will invest US$366 million with a 50.1% stake by June 2012 while Nissan will invest US$376 million and will own 17.03% stake in the joint venture. Russian Technologies will hold 32.87% of the joint venture.