Renault will provide the Russian company Avtovaz technology, not money

Renault will invest in Russian company Avtovaz, which owns 25% of shares, offering technology, said a government representative in Moscow, suggesting that the manufacturer of Lada cars will not require French cash.

"(Renault, n.r.) .. confirmed that they are ready to invest in the company Avtovaz and ensure the latest technologies, assessed the most transparent manner, "said Igor Shuvalov, a senior official in the Putin government.

Earlier this week, a Renault spokesman told Reuters that there are more opportunities to help Avtovaz, where the French manufacturer has 25% of shares of capital injections directly to assembly lines of production models Avtovaz.

Avtovaz largest car manufacturer in Russia, which produces among others the LADA models, has a current debt of 3.3 billion dollars. Renault has paid more than 1 billion dollars for its action Avtovaz two years ago, when Russia was about to become the biggest new car market in Europe, outpacing Germany. But recession has dramatically reduced sales on the Russian market.

Last week, Prime Minister Vladimir Putin has had several meetings with representatives of Renault, and on Friday gave an ultimatum to the French company car: either financial help Avtovaz, or will reduce its shareholding to 25%.

Source: http://www.renault.com/

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