OAO AvtoVAZ plans to sell 450,000 cars in 2010 and generate positive cash flow, chief executive Igor Komarov said on Monday.
The company will vote on a new business plan on 10 March that it has been preparing with Renault and Nissan Motor, he told Dow Jones on Monday at the Renault Avtoframos assembly plant near Moscow.
Renault owns 25% of AvtoVAZ and has agreed to contribute EUR240m of equipment and technology to the new venture. Alliance partner Nissan will invest a further EUR60m. The plan, whose outline was made public last month, targets production of 1m vehicles by 2020, with at least 70% of them under AvtoVAZ’s Lada brand. The rest will be under the Renault and Nissan brands, the report said.
AvtoVAZ needs to retain its 24% market share of the 1.6m new cars it expects to be sold in Russia next year in order to generate positive cash flow, Komarov told the news agency.
AvtoVAZ sold 17,300 cars in Russia in January, down 38% year on year.