Renault SA now has a controlling interest in Russian car maker Avtoframos after acquiring a 26% stake in an open auction for €33 million.
Dow Jones Newswires said that, up until the auction, Avtoframos was held jointly by Renault and the Moscow government, which will retain a 24% stake. Avtoframos was established by the Moscow government and Renault as a production joint venture.
The company’s production facility near Moscow produces the Symbol, a three-box sedan version of Renault’s small Clio car. Earlier this year, Renault said it planned to invest €230 million at the Avtoframos plant to prepare for the production starting next April of a version of the low-cost Logan sedan that will be sold under the Renault badge.
Initial production capacity will be 60,000 Renault Logans annually, but output will be increased in the future, Dow Jones noted. Avtoframos will be the second-largest plant producing the Logan. The main production unit will be in Romania at Renault’s Dacia subsidiary.