AvtoVAZ and Renault-Nissan acquire Kia's Russian producer
Russia's AvtoVAZ and the Renault-Nissan alliance will invest seven billion rubles (225 million dollars) in a Russian producer that makes cars for South Korea's Kia Motors, Intefax reported Friday.
The investment will allow IzhAvto -- which makes Kia cars in the Urals city of Izhevsk -- to expand its production to 300,000 car per year by 2014, the news agency quoted company officials as saying.
The investment will enable the Izhevsk plant to start producing both Lada and Renault vehicles, meeting the alliance's ambitions of to expand further into the Russian market.
Renault-Nissan currently holds a 25-percent stake in AvtoVAZ, with Prime Minster Vladimir Putin offering the alliance a chance to buy a controlling stake in Russia's largest car maker to help it deal with debt.
© 2010 AFP