Financial capacity of the largest market in the country in the Moscow region has declined, but others could grow by tens of percent - mainly due to the replacement of low-cost cars by more expensive models, experts say.19 junemore info
The joint enterprise of Sollers group and Japanese corporation Mazda in Vladivostok produced the first lot of cars.
French Renault, which is the shareholder of AvtoVAZ, gave 52,07 million Euros for Russian plant in July of 2012 (about 2,152 billion Roubles). Funds as a loan were given for a term before December 1st of 2023 with 5,7% per annum. Parties agreed about this loan in June of 2012, informed the agency “Finmarket”.
It was informed earlier that Renault will give loans for a total sum of 126 million Euros for AvtoVAZ to realize the investment program. Funds should be used for the development of company, in particular, for the continuation of project B0 realization. The total sum of investments within development program of plant is about 169 billion Roubes, and the majority part of them would be financed from own funds and funds of shareholders but loans will be only 60 billion Roubles from the mentioned sum.
Shareholders of AvtoVAZ approved the agreement by platform B0 in the meeting in September of 2010. The price of Master Framework Agreement Relating to B0 Platform Project was 400 million Euros. The term of agreement is 25 years. Therewith, AvtoVAZ paid for the license by B0 220 million Euros. The subject of the agreement is the financing of project by the production and assembly in the dedicated part of production facilities of AvtoVAZ: power aggregates, chassis and vehicles on basement of B0 platform, their purchase from AvtoVAZ by Renault and Nissan and obligations of parties about the product quality providing.
AvtoVAZ started to produce officially Lada Largus cars from April of 2012 (on the platform B0 of cars Renault Logan and Sandero) in a new line with a capacity up to 350 thousand cars per a year. There will be assembled cars under Nissan brand by the end of year. It is planned to assemble five models in this line, two of them under Lada brand.