AVTOVAZ bought licenses of Renault for 220 mln euro

At the recent urgent shareholders meeting of AVTOVAZ on the 5th of September its participants approved the signing of two licensed agreements with the company Renault. It was reported for the journalists by the president of AVTOVAZ Boris Aleshin. One agreement concerns the production and assembly of engines (400 � 500 thsd units per year), it costs 120 mln euro. The second one costs 100 mln euro and concerns manufacturing, assembly and distribution of cars R90 and F90, it means of 5 � and 7 � seats local universals on basis of Renault Logan. �This is an important issue for us, - accentuated Mr. Aleshin. � By other means we swill not be able to increase the volumes of output of cars�.
As the analysts of �AUTOSTAT� note, in total, the two licenses agreements with Renault cost 220 mln euro (345, 4 mln USD) for AVTOVAZ. This is more than one third of the sum of purchase of 25% of shares of AVTOVAZ, bought by Renault for 1 bln USD. So, the french company already started to profit from its share in the capital of AVTOVAZ. Boris Aleshin also reported that the regular meeting of committee of directors of AVTOVAZ will take place in Paris. According to agreement between the shareholders, three meetings have to take place in Russia, France and Switzerland � on neutral territory. Other meetings will be distant: by engagements or in form of teleconference. By the way, exactly in Paris, as the head of AVTOVAZ reports, the meeting of directors has to take a decision by a perspective model range.