AvtoVAZ to Decide Soon on Share Sale to Renault-Nissan

Chairman Sergei Chemezov says the co-owners of Russian carmaker OAO AvtoVAZ will meet in Paris with officials from Renault and Nissan later this month to discuss selling a controlling stake to the alliance partners.

Renault owns 25% of AvtoVAZ. The Russian government agreed in 2010 to allow Renault-Nissan to acquire 50% plus one share of the maker of Lada cars.

The partners have been in talks since then with investment firm Troika Dialog and state holding company Russian Technologies Corp., which each currently owns 25% of AvtoVAZ. News reports predict Nissan will take a 15% stake, and Renault will boost its holding to 35%.

The head of Renault's Russia unit said last month that the deal could be completed in April.

AvtoVAZ, Nissan and Renault inaugurated a new €400 million assembly plant in Togliatti, Russia, on Wednesday. The facility has capacity to produce 350,000 vehicles per year for three brands. The factory's first product is the Lada Largus multipurpose van.