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.

Related Content

  • Nissan Leaf technology integrated into electric bus trial in Japan
    January 23, 2018
    Nissan Leaf’s technology will be integrated into an electric bus project in Japan with the intention of making zero-emission public transit more widespread and affordable. The project is led by Kumamoto University’s involvement with a Japanese Ministry of Environment project which aims to eliminate C02 and other emissions from larger vehicles. The trial is scheduled to begin next month. Called Yoka Eco Bus, the vehicle will feature three batteries, three electric motors and an inverter from the Nissan
    Read More
  • Wabco in long-term agreement to supply anti-lock braking technology to Iveco in Brazil
    May 17, 2012
    Wabco Holdings has entered into a long term agreement with Iveco to supply anti-lock braking technology for light- and medium-duty trucks produced in Brazil from 2013 onward. The company’s new agreement with Iveco is consistent with the Brazilian federal government’s mandate for compulsory anti-lock braking systems (ABS) on new trucks, buses and trailers to further increase vehicle and road safety. According to Brazilian legislation, 40 per cent of total commercial vehicles produced in Brazil in 2013 must b
    Read More
  • European car manufacturers face world’s toughest CO2 targets
    July 12, 2012
    Following the adoption yesterday of the European Commission's proposals to reduce CO2 emissions from cars and vans, the European Automobile Manufacturers' Association (ACEA) says it will now work with its members to conduct a full analysis of how the proposed targets should be reached as well as their feasibility, and what this means in practice for the industry as a whole.
    Read More
  • Advanced in-vehicle user interface - future developments
    February 1, 2012
    Dave McNamara and Craig Simonds, Autotechinsider LLC, look at human-machine interface development out to 2015. The US auto industry is going through the worst crisis it has faced since the Great Depression. But it has embraced technologies that will produce the best-possible driving experience for the public. Ford was the first OEM to announce in-car internet radio and SYNC, its signature-branded User Interface (UI), is held up as the shining example of change embracement.
    Read More

Highlighted Content