Ghosn: AvtoVAZ Should Divest Non-Auto Assets

Carlos Ghosn, CEO of the Renault-Nissan alliance that has agreed to buy a controlling stake in OAO AvtoVAZ, tells Bloomberg News that the maker of Lada cars should sell all assets not related to making autos.

Ghosn says Renault-Nissan has made that position clear during negotiations with the carmaker's other owners. AvtoVAZ owns stakes in auto suppliers, a printing house, racing group, property development company, financial companies and resorts, according to the news service.

Renault-Nissan agreed earlier this month to buy a 25% stake in AvtoVAZ for $750 million from investment firm Troika Dialog. Renault already owns 25% of AvtoVAZ.

Renault-Nissan also signed a non-binding agreement with state-owned Russian Technologies Corp., which owns 24.5% of AvtoVAZ, to form a joint venture by 2014 that will control 74.5% of the Russian carmaker. Russian Technologies agreed to restructure its loans to AvtoVAZ, which will be partially repaid from the proceeds of selling some of the carmaker's non-core assets.

Ghosn says he supports AvtoVAZ CEO Igor Komarov, who remains responsible for the Russian carmaker's results. The three-way partnership aims to build 1.6 million vehicles per year in Russia by 2016.