Lada Seeks New CEO

Russia's OAO AvtoVAZ is looking for a new leader to replace Bo Andersson, sources tell Reuters. The Lada maker is controlled by the Renault-Nissan alliance.

Andersson’s current contract expires in December. Reuters’ sources say he could be replaced as soon as April if the company finds a replacement by then.

AvtoVAZ reported last month that its losses tripled to 74 billion rubles ($932 million) in 2015. The company also warned it will need financial aid from its shareholders to avoid collapse. Renault-Nissan CEO Carlos Ghosn vowed in February to “do whatever it takes” to sustain the company.

Like all other carmakers doing business in Russia, AvtoVAZ has been battered by Russia’s sagging economy. Lada sales fell 15% in 2014 and another 31% last year, according to the Moscow-based Assn. of European Businesses. The company’s volume dropped an additional 11% in January.

Lada’s sales declines compare with overall market shrinkage of 10% in 2014, 36% in 2015 and 29% in January. Andersson, who took the CEO job at the end of 2013, has cut costs, eliminated roughly 20,000 jobs and attempted to improve the company's production efficiency.