Renault-Nissan alliance to acquire 25 per cent of AvtoVAZ, grow to 7mil units
14 February 2008

The Renault-Nissan alliance could become the world's third largest car-maker after GM and Toyota, according to CEO Carlos Ghosn.Speaking in Paris at the unveiling of Renault's 2007 financial results, Ghosn revealed that the company was on the verge of signing a deal with Russian car-maker Lada.Ghosn said talks were "well advanced" and he was "confident" of a deal to acquire 25 percent of AvtoVAZ, Lada's parent company.AvtoVAZ's factory at Togliatti has a potential capacity of one million units per year, which, Ghosn claimed, would take the Renault-Nissan alliance up to sales of 7 million vehicles per year.Renault-Nissan's outline plan is to support and expand the Lada brand, with Renault supplying the know-how to improve the current models as well as supplying platforms and drivetrains for future cars.Ghosn also revealed that Renault's turnaround plan was meeting its targets, with global Renault sales up 2.1 percent to 2.494 million vehicles, and revenue up 27.4 percent. The company's all-important profit margin went up from 2.6 percent to 3.3 percent.Renault is still pinning great hopes on its expanding family of low-cost Dacia cars. Production of the Logan is being expanded into Morocco and India, and the company expects sales of the model to balloon from last year's 365,000 units to 1 million by the end of the decade.Ghosn also pointed out that, despite being a budget car, the Logan enjoys profit margins of 6 percent - more than double that of Renault's mainstream vehicles.

Hilton Holloway

Find an Autocar car review

Driven this week

Join the debate


17 February 2008

Uh Renault buying Lada. Why not just make good product ranges by themselves rather than depending on Lada for sales. Looking forward to Lada's new range NOT!!!!!!!!

It's like macro cheese!!!!

18 February 2008

Two words if you are old enough

Skoda & Volkswagen!

18 February 2008

Oh what joy, another car company offering cheap, poor quality and un reliable products.

Renault should concentrate on getting it's own products in order, they may drive well in sporty trim, but having experienced more than one of their products myself and having numerous friends and colleagues and talking to two separate dealers they leave plenty to be desired in the rest of the ownership experience.

I am not joking when I say I got to know the service receptionist so well they got invited to my first sons christening!!!!!!!!!! !!!!!!!

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week