The strategic global alliance Renault-Nissan Alliance has entered into a joint venture partnership with Russian Technologies State Corporation, to own a controlling stake in the Russia's largest car maker – AvtoVAZ. Evidently, Russia is the third largest market for the Renault-Nissan alliance in the world.
Expressing his delight at the company's new joint venture, Carlos Ghosn, said, “Today’s historic agreement is a win-win-win for all companies: Renault, Nissan and AvtoVAZ. It is a significant new chapter in an already solid partnership. The joint venture will help accelerate our Russian market offensive. It will support the competitiveness of AvtoVAZ, Russia’s auto industry leader.”
The announcement came through Renault-Nissan Chairman and Chief Executive Officer (CEO) Carlos Ghosn at a special ceremony held in Moscow on December 12, 2012. The new joint venture between Renault-Nissan and state run Russian Technologies is called Alliance Rostec Auto BV. The ceremony was also presided by Sergey Chemezov, General Director of Russian Technologies and Chairman of the Board of AvtoVAZ along with Igor, Komarov, President of AvtoVAZ.
It has also been revealed that Renault-Nissan alliance has already invested $ 2 billion into their chase for ownership of AvtoVAZ. The Francno-Japanese tie-up is anticipating a positive Return On Investment (ROI) over a period of three years, from its controlling stake in AvtoVAZ.
Reportedly, as per the agreement, the Franco-Japanese alliance between Renault and Nissan will invest a sum of $ 742 million for a 67.13 per cent stake to take control over AvtoVAZ by mid-2014. Further, Renault-Nissan will have eight seats among a Board of 15 members. By 2014, Alliance Rostec Auto has also revealed intentions to take over the remaining AvtoVAZ stake, which is currently owned by Troika Dialog Investments.
Speaking on the incredible achievement, Sergey Chemezov, was quoted as saying, “The Russian automotive market is on the edge of becoming No. 1 in Europe in terms of new vehicle sales. By 2020, AvtoVAZ, together with its partners, expects to produce, annually, over 1 million cars matching the highest world standards. Thanks to the partnership with the Renault-Nissan Alliance, new modern and highly paid working places will be created for the inhabitants of Togliatti and the region.”
Further, commenting on Renault-Nissan and Russian Technologies take over, Igor Komarov, said, “Strengthening of our partnership is a logical next step of our joint operation. Yesterday, AvtoVAZ became home to multiple brands with the production of the first Nissan model in Togliatti. Our rapid integration will improve the efficiency of our common efforts and increase our market share.”
