Renault has Signed a Deal with AvtoVAZ of Russia by buying 25 percent plus one share stake in the company. Technology-sharing between them is on the cards.
Renault has entered into an agreement with Russian motor manufacturer AvtoVAZ in order to benefit mutually in that part of the world. The agreement will see Renault investing some USD1 billion to buy 25 percent plus one share of AvtoVAZ. The latter Russians, the biggest automakers in Russia, will get assistance on product development as well as renewing their range of existing vehicles.
A great deal of technology transfer will take place between the two companies, more from Renault to AvtoVAZ for their Lada vehicles.
Renault for their part, would be very interested in dominating the Russian market, a scenario that would become reality after 2009 when the agreement starts bearing fruit. This may be another step for Renault CEO Carlos Ghosn to return to the fore after talks about a possible merger with General Motors fell apart two years ago.