Shokhin: “AVTOVAZ” must involve a Manager from Renault or Nissan

Shokhin: “AVTOVAZ” must involve a Manager from Renault or Nissan

MOSCOW, March 10. AVTOVAZ should attract a Manager with experience in global markets, such as Renault or Nissan, told journalists today the head of the Russian Union of Industrialists and entrepreneurs Alexander Shokhin.

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“Even, perhaps, more advanced Manager from Renault or Nissan need to call, in my opinion. I would so have acted. Not rostec moved there with their managers, although there is decent, but the foreign partner would have the opportunity, with experience on global markets,” he said.

According to him, AVTOVAZ need to maintain the sense of a global company.

By the end of 2015 AVTOVAZ loss under IFRS at RUB 74 billion and a negative cash flow, and stated in the statements that without the support of shareholders may be unable to service debt and continue operations. Chapter GC “rostech” (one of the shareholders of the company), Sergei Chemezov, has delivered today to the head of “AVTOVAZ” Bo Andersson blamed for this loss, citing the fact that the Manager did not use the resource of the Russian suppliers, but I went the easy way – signed contracts with suppliers of its partner companies – Renault and Nissan.

After the report of “AVTOVAZ” losses “rostech” and Renault stated that discussing ways of restructuring the company’s debt. As a possible scenario includes recapitalization by depositing additional funds in the company’s share capital and conversion of debt.

In addition, the shareholders intend to change the General Director – the Board of Directors at which this can occur is scheduled on March 15. Previously, the newspaper “Vedomosti” with reference to its sources wrote that the new leader may be a foreigner – for example, a Manager from Renault.

The controlling stake of AVTOVAZ is owned by Renault-Nissan Alliance, block-package – GC “rostec”. These shareholders control the company through Alliance Rostec Auto BV.