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Renault is poised to raise its bet on Russia, voting with other shareholders in troubled AvtoVAZ to launch an 85 billion ruble (1.2 billion euro) recapitalization in which the French carmaker may be the sole cash contributor.
Renault-Nissan said this week it will give up the chairmanship of AvtoVAZ, a further sign that its hold on the maker of Lada cars has been weakened by recent tensions over restructuring at a time of collapsing Russian demand for vehicles.
Nicolas Maure, the head of Renault’s Romanian subsidiary Dacia, will replace Bo Andersson as CEO of Russia’s largest automaker AvtoVAZ, a source close to AvtoVAZ shareholders told Reuters.
The Renault-Nissan alliance said Bo Andersson planned to step down as CEO of AvtoVAZ, which builds Lada cars in Russia. AvtoVAZ’s board will meet on March 15 and is expected to announce Andersson’s replacement, the company said in a statement.
AvtoVAZ Chairman Bo Andersson is fighting back against suppliers he says are holding back his efforts to improve quality and cut purchasing costs at Lada, Russia’s best-selling car brand.
Renault may delay adding Russian unit AvtoVAZ to its books, insulating the automaker from the country’s political and economic turmoil.
AvtoVAZ will increase the price of cars from Russia’s best-selling Lada brand by 9 percent starting Thursday because of the plunging ruble, the country’s largest carmaker said.
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