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Wednesday, January 30, 2008
Renault-Nissan chief Carlos Ghosn says his firm will make Lada a "strong and attractive brand" as their recent alliance develops.
Renault paid between £750m and £1bn for a 25 per cent stake in Avtovaz, Lada's parent company, back in December. But Ghosn has since stated that it does not want to take control, and that the arrangement is a "partnership". "The development of the Lada brand will be a priority," he said
The deal could have benefits for both sides. It gives Avtovaz badly-needed access to more modern designs and technology - the firm has been fighting a losing battle against imports over the last 20 years - and it gives Renault a valuable foothold in a rapidly expanding market. Some industry analysts believe that Renault will aim to turn the Lada brand into another version of Dacia. It bought the struggling Romanian car maker that it bought outright in 1998, but it is now on course to sell a million of its low-cost Logans worldwide by 2010. Future Ladas could incorporate slightly older Renault tech and the strength of the firm's name might allow it to not only resist imports at home, but also increase its export potential across Europe.
However, another industry expert told Autocar, "Ghosn's comments are a political gesture to Avtovaz, to show respect, keep workers calm and please the politicians. It's hard to see how Renault needs another budget brand on top of Dacia."
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