Top Russian car maker AvtoVAZ reportedly is close to signing a deal with Canadian parts maker Magna International to develop new models and build a plant.
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Quoting AvtoVAZ sources, the Vedomosti business daily reported that the company had recently signed a framework agreement with Magna on strategic cooperation and that a full contract could be signed by the end of October, Reuters said.
AvtoVAZ, already in a joint venture with General Motors, had named Renault and PSA/Peugeot-Citroen among its potential partners, the report noted, while the newspaper suggested that AvtoVaz had opted for Magna instead of Renault.
The news agency noted that Renault, which is seeking a bigger slice of Russia’s booming car market, said in May it was studying various options of cooperation with AvtoVAZ, and Russian media have reported the French car maker was seeking an equity stake in the firm.
But Russian officials have said AvtoVAZ will not consider an equity deal with a foreign strategic investor, Reuters added.
