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Renault Reiterates Aim to Consolidate AvtoVAZ in 2016
Renault SA confirms to Bloomberg News it intends to complete the consolidation of affiliate OAO AvtoVAZ next year in spite of Russia's collapsing car market.Renault and partner Nissan Motor Co. gained majority control of Lada-maker AvtoVAZ last year.
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Renault SA confirms to Bloomberg News it intends to complete the consolidation of affiliate OAO AvtoVAZ next year in spite of Russia's collapsing car market.
Renault and partner Nissan Motor Co. gained majority control of Lada-maker AvtoVAZ last year. But combined Russia sales by the three brands in 2015 plunged 27% to 348,500 cars in January-August. Renault has forecast the Russian market will contract 30% this year.
Renault had hoped to add AvtoVAZ to its books this year. But CEO Carlos Ghosn said in February the company was pushing back the goal to 2016.
Renault tells Bloomberg that AvtoVAZ must be consolidated now that it is majority owned by Renault-Nissan, and will be added to Renault's books as soon as the unit conforms with international financial reporting standards. An analyst suggests to the news service that the consolidation isn't likely to occur until AvtoVAZ is able to contribute cash and sustainable profit to its owner.
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