Renault-Nissan and Russian Technologies finalize the partnership agreement with AvtoVAZ
The Renault-Nissan Alliance and the public corporation Russian Technologies have created a joint venture which will bring together the interests held by the partners in the company AvtoVAZ and thus play the role of majority shareholder, guaranteeing a stability over the long term, the largest Russian car manufacturer Lada owner of the brand.
CEO of Renault-Nissan, Carlos Ghosn, announced today the creation of the joint company Rostec Auto Alliance BV, at a ceremony held in Moscow, together with Sergei Chemezov, Director General of Russian Technologies and Chairman of the Board and AvtoVAZ Igor Komarov 's, President of AvtoVAZ.
"The historic compromise announced today is a win for both Renault and Nissan for AvtoVAZ," stated Carlos Ghosn. "It inaugurates a major new chapter in the story of a strong partnership already. This joint venture will enable us to accelerate our expansion in Russia, while supporting the competitiveness of AvtoVAZ, the leader of the Russian automotive industry. "
The agreement provides that the Renault-Nissan Alliance will provide 23 billion rubles (742 million U.S. dollars). This investment will give him 67.13% stake in the joint venture by the end of the first half of 2014. The latter in turn will hold 74.5% of AvtoVAZ capital.
Renault, which had already acquired 25% of the capital of AvtoVAZ in 2008 and was using the Russian manufacturer realize a remarkable turnaround, will take about 11.3 billion rubles (366 million U.S. dollars) in the new structure. Renault wants to detain 50.10% of the joint venture by June 2014. Nissan, which was not previously a shareholder of AvtoVAZ, will invest 11.7 billion rubles (376 million U.S. dollars). The Japanese manufacturer is a participation level of 17.03% by June 2014.
Russian Technologies should controler that date 32.87% stake in the joint company.
Under the new agreement, Russian Technologies will reduce its ready to AvtoVAZ height of 8 billion rubles (258 million U.S. dollars) in receiving the products resulting from the anticipated sale of assets outside core business of AvtoVAZ. The rest of the debt, or about 46 billion rubles (1.48 billion U.S. dollars) securities lent without interest, is extended until 2032. These provisions allow AvtoVAZ has a strong balance sheet, free from coercion on cash .
When the agreement has been fully implemented, a 2014 Auto Alliance Rostec BV has redeemed all shares of AvtoVAZ currently held by the company Troika Dialog Investment Ltd.
The transaction is subject to conditions previously, which are expected to be met quickly.
Together in a real engine of European economic growth
The attention of the Board of Directors of Alliance Rostec AutoBV will focus on the major decisions of the shareholders of AvtoVAZ. Such meeting will also focus privileged location between the Alliance and Russian Technologies.
As part of the agreement, the CEO of Renault-Nissan, Carlos Ghosn, becomes president of the Board of Directors of Alliance Auto Rostec BV. This process includes:
three representatives of the Renault-Nissan Alliance: Dominique Thormann, EVP, CFO of Renault; Peter Joseph, EVP, Chief Financial Officer of Nissan; Bruno Ancelin, SVP, Operations Director of the Eurasia Region;
two representatives of Russian Technologies: Sergei Chemezov and Igor Zavyalov, respectively Director General and Deputy Director General of the company state.
AvtoVAZ Board from 12 to 15 members. The Renault-Nissan Alliance will be eight representatives. Candidates will be invested at the extraordinary meeting of shareholders of AvtoVAZ to be held February 12, 2013. Sergei Chemezov remain Chairman of the Board of Directors of AvtoVAZ and exercise from June 2013 as vice-president alternating with Carlos Ghosn.
"The Russian car market is about to become the first in Europe in terms of sales of vehicles," stated the Director General of Russian Technologies, Sergei Chemezov. "In 2020, AvtoVAZ and its partners will produce more than one million cars, according to the best international standards. The partnership with the Renault-Nissan Alliance will help to create modern and well remunerated jobs in Togliatti and its region. "
The deal comes eight months after the inauguration by the President of the Russian Federation Vladimir Putin a complex assembly with a capacity of 350,000 vehicles per year Togliatti in the Russian region Samara, an industrial complex called to host one of the largest programs of platform sharing of Renault-Nissan Alliance. Manufacturing Lada Largus started in spring 2012. Production Nissan Almera has just been launched, with a gradual buildup rate until spring 2013. In 2013, five models will emerge from this complex assembly for three brands: Lada, Renault and Nissan. The investments made on this site will represent a term of approximately € 400 million.
The partners have also other production sites in Russia: Moscow, St. Petersburg and has a Izhevsk (a 700 km north of Togliatti in a factory bought in 2012 by AvtoVAZ). Each of these sites continue to benefit from new projects and investments.
Given the improvements achieved in complex Togliatti and those provided on other sites, the Renault-Nissan and AvtoVAZ in Russia will have an annual production capacity of at least 1.7 million cars from 2016 .
"Strengthening our partnership is a logical step in our collaboration," emphasizes Igor Komarov, President of AvtoVAZ. "AvtoVAZ since yesterday is a multi-brand manufacturer, with production start Togliatti has a first Nissan model. Thanks to this rapid integration, our cooperation will gain in efficiency and we will increase our market shares. "
Last year, the total production of the Russian automobile industry reached 2.65 million vehicles, lightweight utilities included. This figure should graze the bar in 2012 2.9 million copies.
Russia is currently the third step of the Renault-Nissan Alliance, in order of importance. The Alliance has sold 878,990 cars in Russia last year, including 578,387 Lada, or nearly 33% market shares.
About the Renault-Nissan Alliance
The Renault-Nissan Alliance is a strategic partnership established between the French Renault (including its headquarters in Paris) and the Japanese Nissan (Yokohama). Associated with AvtoVAZ, the Alliance sells more than 10% of cars sold in the world. Strategic partners since 1999, Renault and Nissan sold 8.03 million cars in 2011 in nearly 200 countries. The Alliance has agreements of strategic cooperation with many manufacturers, such as Daimler German, Chinese Dong Feng or some regional producers such as Ashok Leyland in India.
About Russian Technologies
Created in 2007, the company Russian Technologies aims to contribute to the design, to the production and export of high-tech industrial products, was intended for both civilian and military. Bringing together 663 different entities, the Russian Technologies group is made up of 12 active holdings in the military sector and 5 holdings present in the civil industry. Divided into sixty districts and territories of the Russian Federation, many subsidiaries of Russian Technologies has sold abroad in more than 70 countries. Directed by Sergei Chemezov, the Group recorded a net profit in 2011 of 1.55 billion rubles. Its tax contributions to the budgets of the various entities of the State amounted to 100 billion rubles.
Source: Renault-Nissan
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