Renault is not looking to inject any further capital into its Russian partner AvtoVAZ, French reports suggested today.
Renault owns a 25% stake in the struggling Russian automaker which it acquired as part of a deal that saw AvtoVAZ licensed to use Renault’s platforms and transmissions for Lada. Since then AvtoVaz has, however, been hit hard by the global financial crisis.
Earlier this week, AvtoVAZ said it hoped soon to receive some 26bn roubles (US$680m) from the Russian federal government in order to ease a liquidity crisis that has disrupted production.
AvtoVAZ company president Boris Alyoshin has told suppliers the firm has insufficient funds to pay them.
He appealed to the government for financial aid and one solution being studied is a capital increase, local media said.
A Renault spokesman on Friday told Reuters: “As a core shareholder, we’re watching the situation at AvtoVAZ closely. We’re trying to help them find financing, drawing on our relations with banks and other institutions.”