AvtoVAZ CEO Andersson to Step Down

As expected, Bo Andersson is leaving OAO AvtoVAZ after more than two tumultuous years as CEO of Russia’s largest carmaker.

The Renault-Nissan Alliance, which controls AvtoVAZ, says a new CEO will be named on March 15. Reuters reported a week ago that the Lada maker was looking for a new chief.

Andersson, a former General Motors Co. executive, cut thousands of jobs at AvtoVAZ and was praised for his efforts to streamline production and tune up the company’s rickety and corrupt supply base. But the sagging Russian economy and collapsing auto market nearly tripled AvtoVAZ’s net loss to about 74 billion rubles ($1 billion) last year.

When it announced its 2015 results in February, AvtoVAZ warned it will need a cash infusion from its major shareholders to avoid collapse. Renault-Nissan CEO Carlos Ghosn said at the time the alliance will do “whatever it takes” to prop up the Russian company.