Auto majors Renault-Nissan marriage is going to have a third partner, the Russian Technologies Corp in order to become the biggest stakeholder in OAO AutoVAZ, Russian’s biggest auto manufacturers. As per reports, Renault SA and Nissan Motor CO will jointly invest $750 million to take the majority holding in the JV, which means that it will owe 74.5% of AutoVAZ. The reports suggest that Carlos Ghosn, who manages both Renault and Nissan, is eyeing to merge in AutoVAZ in order to amplify its growth in Russia. Although the French-Japanese JV may skip Germany in their journey of becoming Europe’s biggest car brand.
AutoVAZ has set its eyes to gain 25% of the auto market in the next five years (40% jointly with Renault-Nissan). AutoVAZ officials have stated that the company plans to sponge as much as $ 2 million by 2015 to fund the carmakers biggest overhaul in decades to revamp its portfolio and turn the heat against international brands. The unveiling of the first model Lada Largus, the first model built on Renault’s platform was done in April. Renault-Nissan JV will merge its current stake of 25% in AutoVAZ with the stake held by public sector company Russian Technologies. The three-company team will then purchase the shares owned by Trioka Dialog. With the amalgamation of Trioka Dialog shares the JV will have a 74.5% stake in AutoVAZ and the Renault-Nissan only would have control over more than two-third of AutoVAZ’s shares.