Renault gets a Russian bear hug
05 October 2009
Russian prime minister Vladimir Putin appears to have forgotten his recent comments about reducing the state’s role in the economy.
As the The Wall Street Journal reported on Friday:
Russian Prime Minister Vladimir Putin said Friday that Renault SA’s stake in OAO AvtoVAZ could be diluted unless the French company helps bail out the failing Russian auto maker.
Renault’s $1 billion investment for a 25% stake last year was a landmark deal for Russia, representing the largest by a foreign company outside the energy sector. But the French car maker’s efforts to streamline production have stalled, and AvtoVAZ has struggled to pay suppliers and trim its bloated work force. Read more…
