Media reported about the successor of Bo Andersson as head of AVTOVAZ

The head of AVTOVAZ is the current President of the company Bo Andersson will be appointed as a protege of Renault-Nissan Alliance, writes “Interfax” with reference to the words of the source close to shareholders of the company. In addition, the company introduced the position will be responsible for relations with state authorities in terms of social policy, said the Agency interlocutor.

Thus, according to him, the new candidate for the position of head of the company has not yet been approved. “The decision is still pending. The new head will most likely be a foreigner, a new nominee has not yet been approved”, he said.

Another source said that Andersson may take corporate Vice President of Nissan, the head of brand Datsun, Vincent Kobe, previously included in the Board of Directors of AVTOVAZ.

The interlocutor of Agency has told, that in the control circuit of the plant is planned to change. “Perhaps soon a decision will be made about the reconfiguration of the governing body. You may need to create an additional position for effective interaction with state authorities, and the interests of the state in particular, to oversee issues of social policy of the enterprise”, — he explained.

In late February, “Vedomosti”, with reference to its sources said that the state Corporation rostec, which owns a blocking stake in AVTOVAZ, began the search for a successor to Bo Andersson. Prior to that, sources told me that the work of Andersson dissatisfied with both shareholders of AVTOVAZ — Renault-Nissan Alliance and state Corporation “rostec”, while both companies declined to comment.

The Chairman of the Board of Directors TopContact Arthur Shamilov said “Vedomosti” that the beginning of finding a successor may not mean early retirement of the current President of AVTOVAZ, as the top Manager of this level is 6-9 months.

As previously posted , the current three-year contract Andersson expires in December 2016. In the contract were recorded key indicators — achieving a market share of 20% and the output of AVTOVAZ to break even at a 6% operating margin.

By the end of 2015, the factory received a record loss of 74 billion roubles under IFRS — three times more than the year before. Loss from operations increased more than eight times, to 66.8 billion rubles Market share of AVTOVAZ, according to the Association of European businesses, by the end of 2015 amounted to 16.8%.