AvtoVAZ, 25% owned by Renault, plans to triple production to around 1.2m cars a year by 2020, Reuters reported, citing unnamed sources close to the company.
Last year AvtoVAZ sold 349,500 vehicles and has said previously that its target for 2010 was 450,000.
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Reuters’s sources said the automaker is also considering issuing shares worth EUR320m (US$434.2m) this year.
The company was rescued from near collapse in 2009 by the Moscow central government, anxious to protect jobs at Togliatti which is heavily reliant on AvtoVAZ for employment.
Most of the 1.2m vehicles in the recovery plan will be Ladas rather than Renaults or Nissans, according to the source who spoke after a board meeting to discuss the group’s restructuring plan.
Russian car sales fell 34% in the first two months of this year and a scrappage scheme launched this week has made a chaotic start with dealers complaining it is enveloped in bureaucracy and that scrapyards aren’t geared up to take old cars or are too far away.
