According to Gazeta.Ru, Renault is preparing AvtoVAZ for sale, while the state corporation Rostec or structures of the Ministry of Industry and Trade, which owns a 32.4% stake in the Russian JV Lada Auto Holding, may become the new owner. The remaining 67.6% belongs to Renault.
Sources confirmed that most of the foreign management of AvtoVAZ will leave the plant or be transferred to remote work. Some of the foreign personnel left Togliatti earlier, others will do it a little later – and they will not return back.
Thierry Pieton, financial director of the Renault concern, said at a recent press conference that the French side managed to “make progress” in negotiations with the Russian authorities regarding the future of AvtoVAZ, but did not go into details. Over the past quarter, AvtoVAZ’s contribution to Renault’s total turnover amounted to 527 million euros, which is 23.1% lower than in the first three months of 2021. At the same time, the quarterly revenue of the Renault Russia division amounted to 367 million euros, having decreased by only 2.1%.
_large.jpg)
On March 23, Renault announced the suspension of business in Russia. Later, the concern said that against the backdrop of events in Ukraine, as well as problems with the supply of components, it considers exiting its stake in AvtoVAZ as a solution. Now the value of this share can reach approximately 1.2 billion euros, although the final amount may be different.
Sergey Burgazliev, an independent automotive industry consultant, noted that the cost of a plant in Izhevsk could be 300 million euros, a group of enterprises in Togliatti – about 850-900 million euros. The deal may also include the Renault Russia plant, the expert estimates its cost at 350-450 million euros.
First of all, it seems most logical for AvtoVAZ and Renault to conclude agreements on the supply of car kits for those models that are based on their units. If the French completely leave, breaking the supply chain of components, then AvtoVAZ will be left with three Lada cars: Granta, Niva and Vesta.
Sergey Burgazliev
There have been no official comments from the parties mentioned so far.
Source: ixbt
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
