Brent Co / Renault-Nissan Press | June 29, 2013 14:31
Alliance looking to capitalize on rapid growing Russian market
Renault-Nissan Chairmand and CEO Carlos Ghosn was named as the new Chairman of Russian biggest carmaker Avtovaz, which builds Lada cars. Along with Ghosn comes eight new people from the Renault-Nissan Alliance to the now 15-member board of the Russian company.
“The Alliance is committed to providing the resources and expertise necessary to transform AVTOVAZ into a world-class car manufacturer,” said Carlos Ghosn.
Russian Technologies CEO Serget Chemezov, previous Chairman of Avtovaz will now assume the Vice Chairman post on the board.
Renault acquired 25% of Avtovaz in 2008 and finalized an agreement last year to invest an additional $366M in a joint venture with Russian Technologies. Upon completion of the investment, it would effectively give Renault 50.1% ownership of Avtovaz; Nissan on the other hand will own 17.03% with an investment of $376M. The total investment of the Renault-Nissan Alliance of $742M will give the group a 67.13% stake in the Russian automaker.
Ghosn was recently re-elected as President and CEO of Nissan Motor Company. He is currently the only executive in the global automotive industry holding top posts in Renault, Nissan and Avtovaz; along with the Renault-Nissan Alliance.