Renault, AvtoVAZ To Seal a Deal by Month End
February 20, 2008

France’s Renault confirmed it will seal a deal negotiated in December with Russia’s leading car manufacturer, AvtoVAZ, whereby Renault will take a 25 percent stake in AvtoVAZ on February 29, Dow Jones Newswire reported.

Renault has said the deal will help rejuvenate the Lada brand by providing AvtoVAZ with new vehicle platforms and powertrains. AvtoVAZ and Renault will sell cars together.

Renault Chief Executive Carlos Ghosn said the deal makes the combined sales of Renault, Nissan and AvtoVAZ at more than 7 million vehicles a year, ranking the trio as the world's third-largest carmaking group after General Motors and Toyota.

Photo courtesy Renault: Renault President and CEO Carlos Ghosn, left, and Sergey Chemezov, head of Russian Technologies and chairman of the board of AvtoVAZ, sign a memorandum of understanding December 8, 2007.

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