Skip to main content

Renault-Nissan Alliance in Russian JV

The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand. The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint ven
May 4, 2012 Read time: 2 mins
RSSThe 2453 Renault-838 Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand.

The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint venture that will control the automaker.

Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13 per cent of the joint venture in mid-2014. The joint venture will then hold 74.5 per cent of Avtovaz.

Renault, which purchased 25 per cent of Avtovaz in 2008 and then helped the company to pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in Avtovaz, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.

Russian Technologies has agreed to restructure its outstanding loans with Avtovaz with approximately US$238 million proceeds from the anticipated sale of Avtovaz’s non-core assets being used to repay part of Russian Technologies' loans. The remainder of circa US$1.56 billion of interest-free debt is being extended well beyond its current maturity date. This gives Avtogaz a strong balance sheet with no liquidity constraints.

For more information on companies in this article

Related Content

  • Peru lands second metro loan
    December 11, 2014
    Peru has secured additional funding for its US$5.8 billion Lima metro line No.2 project, which is due to be completed by 2020. Just a day after receiving a US$750 million from the Inter-American Development Bank (IDB), Caracas-based lender CAF agreed to lend a further US$150 million, the third loan it has granted the initiative. "This approval complements the support CAF has been providing Peru in the search for urban transport solutions," CAF president Enrique García said in the statement. The L
  • European associations and congress news
    August 19, 2015
    A preliminary speaker line-up and a number of live demonstrations have been announced for the 2015 ITS World Congress. The demonstrations will include Automatic Braking, a plug in ‘connected vehicle’ Cooperative Adaptive Cruise Control at Intersections, Remote Parking and Driver Monitoring System for Automated Driving and Bicycle Tracking. As part of the Automatic Emergency Braking demonstration the driver’s performance will be analysed, along with the behaviour of the other road users. Drivers will receiv
  • Another section of West Coast Green Highway EV charging infrastructure announced
    April 19, 2012
    The Washington State Department of Transportation (WSDOT) has selected AeroVironment to manufacture, supply, install and operate a network of nine fast-charging stations for electric vehicles on Interstate 5 and US 2. Stations will be located every 40 to 60 miles along stretches of I-5 between the Canadian border and Everett and between Olympia and the Oregon border, as well as along US 2 between Everett and Leavenworth.
  • Volkswagen to step up EV development
    October 16, 2015
    Volkswagen will cut investment plans at its biggest division by US$1.1 billion a year and step up development of electric vehicles (EV), as it battles to cope with the fallout from its cheating of diesel emissions tests, according to Reuters. The German company also said it would speed up cost cutting at the VW division, its largest by revenues, and put only the latest and ‘best environmental technology’ in diesel vehicles.