Mexican Media Brands
UPDATE: AvtoVAZ Seeks Aid As Losses Triple
Russia’s largest carmaker, OAO AvtoVAZ, says its net loss tripled to 74 billion rubles ($932 million) in 2015.
#economics
Share
Russia’s largest carmaker, OAO AvtoVAZ, says its net loss tripled to 74 billion rubles ($932 million) in 2015. Demand for its Lada cars plummeted 36%, and revenue sagged 8% to 176 billion rubles ($2.2 billion).
Bloomberg News reports the company at year-end had breached covenants on loans worth more than 43 billion rubles ($542 million). A Moscow-based analyst tells the news service the company faces collapse without shareholder support.
AvtoVAZ’s two largest stakeholders are Renault SA with a 50% share and the French carmakers alliance partner, Nissan Motor Co. The three companies account for about one-third of the Russian car and light commercial vehicle market.
CEO Carlos Ghosn says Renault will “do whatever it takes” to sustain AvtoVAZ until the Russian market revives. The country’s demand for light vehicles contracted 37% to 1.60 million units over the past three years, according to the Moscow-based Assn. of European Businesses.
RELATED CONTENT
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
Fuel Economy Gains in July
What you’re looking at here is a sales-weighted fuel economy chart (the numbers in the white boxes represent miles per gallon) that was put together by two diligent researchers, Michael Sivak and Brandon Schoettle, of the University of Michigan Transportation Research Institute.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.