Renault-Nissan has announced a take over of Russian automobile manufacturer AvtoVAZ in a joint venture with Russian Technologies, as CEO Carlos Ghosn went to Moscow to sign the agreement.
Renault-Nissan will gain control of 67.13 percent of the joint venture following a 742 million USD investment, with Russian Technologies holding the remaining stake, according to the terms of agreement.
The venture, to be completed by mid-2014, will own 74.5 percent of AvtoVAZ.
Ghosn said he wants to revive the Lada brand with technology and expertise provided by Renault-Nissan.
“Without any doubt, the Lada brand will be in the short term and the long term the largest brand in Russia for the alliance,” he told Reuters. “We are here to strengthen the brand and give it everything it needs.”