Company's website: www.renault.com
T: +33 176840404
Public company (EURONEXT: RNO)
Contact: Mr Carlos Ghosn, Chairman and Chief Executive Officer
Renault SA manufactures a range of small to mid-size cars and light commercial vehicles. The French government has about a 15 per cent stake in Renault.
Renault S.A. is a French multinational vehicle manufacturer established in 1899. Today it is a multinational, multiband group that sold more than 2.6 million vehicles in 128 countries in 2013.
Renault group is formed by the namesake Renault marque and subsidiaries Automobile Dacia from Romania and Renault Samsung Motors from South Korea.
Renault has a 43.4% controlling stake in Nissan of Japan, a 25% stake in AvtoVAZ of Russia and a 1.55% stake in Daimler AG of Germany.
Renault also owns subsidiaries RCI Banque (providing automotive financing), Renault Retail Group (automotive distribution) and Motrio (automotive parts).
Renault Trucks, previously Renault Véhicules Industriels, has been part of Volvo Trucks since 2001. Renault Agriculture became 100% owned by German agricultural equipment manufacturer CLAAS in 2008. Renault has various joint ventures, including Turkish Oyak-Renault and Iranian Renault Pars.
480 million euros ($651 million) – was invested by Renault in its Moscow factory, Avtoframos.
Further expansion of the plant has been hampered in part by the lack of land, but more importantly by the fact that Renault has invested almost 1 billion euros ($1.35 billion) in one of Russia’s automotive giants, AvtoVAZ, and plans to increase production at their plants in Tolyatti and Izhevsk.
But all the same, the French company had the resources for a new project in Moscow: The city government together with Sberbank, Renault and Fiat are financing the assembly of light commercial vehicles, or LCV, of up to 1.5 tons at the ZIL plant. Production is slated to begin in late 2013 to early 2014.
JV. Renault-Nissan Alliance and Russian Technologies State Corporation
The Renault-Nissan Alliance and Russian Technologies State Corporation have created a joint venture which will hold their entire equity interests in AvtoVAZ and serve as a stable, long-term controlling shareholder for Russia’s largest car company and the owner of the LADA brand.
Renault-Nissan Chairman and CEO Carlos Ghosn announced the creation of Alliance Rostec Auto BV on December 12, 2012 along with Sergey Chemezov, General Director of Russian Technologies and Chairman of the Board of AvtoVAZ, and Igor Komarov, President of AvtoVAZ.
According to the terms of the deal, Renault-Nissan will invest RUB23 billion (US$ 742 million). The investment will give Renault-Nissan 67.13% of the joint venture by mid-2014. The joint venture will then hold 74.5% of AvtoVAZ.
Renault, which purchased 25% of AvtoVAZ in 2008 and then helped AvtoVAZ in its successful turnaround, will invest about RUB11.3 billion (US$366 million) in the joint venture and plans to own 50.1% in the joint venture by June 2014. Nissan which did not previously own a stake in AvtoVAZ, will invest RUB11.7 billion (US$376 million) and plans to own 17.03% in the joint venture by the same period.
Over the same period, Russian Technologies will hold 32.87% of the joint venture.
As part of the deal, Russian Technologies is restructuring its outstanding loans with AvtoVAZ with RUB8 billion (US$258 million) proceeds from the anticipated sale of AvtoVAZ’s non-core assets being used to repay part of Russian Technologies loans. The remainder of circa RUB46 billion (US$1.48 billion) of interest-free debt is being extended until 2032. This gives AvtoVAZ a strong balance sheet with no liquidity constraints.