The newly appointed president of AvtoVAZ, Boris Alyoshin, believes his company will form an alliance with the two other Russian vehicle manufactures, namely GAZ and KamAZ.

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The Russian news agency reported that Alyoshin, formerly the head of Russia’s federal agency for industry, told a business daily that he is convinced that consolidation of the three firms is imminent.


Alyoshin added that such consolidation should not be considered a corporate merger but rather a ‘pooling of engineering capacities’.


AvtoVAZ has a failing alliance with GM, and has been seeking alternative foreign partners, holding talks with Magna, Renault, Fiat and Porsche. However, Alyoshin said that GM could still be viewed as a strategic partner.


Earlier this month it was reported that AvtoVAZ is seeking a strategic investor amongst Russian steel companies.

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