AvtoVAZ Car would have given GM some extra capacity - and will give Renault some extra capacity - in one of the hottest markets in the world,” said Erich Merkle, an analyst at IRN Inc. in Grand Rapids, Michigan. “It’s a bit of a gain for Renault.
Carmakers are jostling for a share of the Russian market, where foreign auto sales soared by almost two-thirds through September. Paris-based Renault already has a plant in Moscow, while larger French rival PSA Peugeot Citroen plans to choose a factory site this month.
Renault Chief Executive Officer Carlos Ghosn will travel to AvtoVAZ’s headquarters in Togliatti tomorrow, when more details will be announced, said Nathalie Bourotte, a spokeswoman for the French company. She declined to comment further.
GM said Ape. 18 it was pursuing a “significant” stake in AvtoVAZ Car, and spokeswoman Melisa Tezanos today had no immediate comment on Renault’s bid. The Detroit automaker already builds Chevrolet Niva sport-utility vehicles and Viva sedans in a joint venture with the Russian company. GM is nearing completion of a plant near St. Petersburg that will make 70,000 autos annually.
