As the General Director of Renault in Romania, headed “AVTOVAZ”

As the General Director of Renault in Romania, headed “AVTOVAZ”

The Board of Directors of “AVTOVAZ” has selected the new head of the CEO of Renault group in Romania, Nicolas Mora. The tasks of the group remain the same: increase sales, increase market share and download Russian industries.

MOSCOW, 15 Mar. The Board of Directors of AVTOVAZ on Tuesday accepted the anticipated resignation of the company’s President Bo Andersson and chose the CEO of Renault group in Romania, Nicolas Mora, the new head of the concern. The new President of the Volga automobile plant will boost sales in Russia, to find a compromise with Russian suppliers and to increase exports, experts say.

Officially Andersson is leaving the automaker April 4. Swedish top Manager has filed a resignation still on February 17, said earlier source.

Carlos Ghosn, Chairman of the Board of Directors of “AVTOVAZ” and the Alliance of Renault-Nissan, which owns a controlling stake in Alliance Rostec Auto BV, noted that with the arrival of Mora, the company plans to continue to follow that strategy. According to General Director of state Corporation “rostec” Sergey Chemezov, in front of “AVTOVAZ” the goal is to create a highly competitive product, increase market share and provide an effective process of downloading of the Russian production of the component base.

Minister of industry and trade of the Russian Federation Denis Manturov, in turn, also considers the main task of the new head of “AVTOVAZ” orientation of Russian component suppliers to maximize cost reduction of production of cars. The Minister stressed that the individual “instruments of a financial nature” for “AVTOVAZ” is not provided, and the possible measures of support will be discussed with the majority owner — the Renault-Nissan Alliance.

The Swede did not help

Andersson supervised the Volga car factory a little over two years — from January 2014. Previously, he was the head of “GAZ Group”, and before that worked for a long time in different divisions of General Motors.

For the first time criticism of the head of the foreigner was heard in the pages of the Volga media, when the President of “AVTOVAZ” in the framework of the program to reduce costs launched in February 2014 the process of optimization of personnel. During the year, with the auto giant by agreement of the parties was dismissed about 6 thousand people, not less than 1,1 thousand – in 2015.

At the end of last year, dissatisfaction with the work of Andersson expressed Chemezov, explaining that the shareholder is not satisfied with the policy of the President of “AVTOVAZ” in relation to the job cuts. According to Mr Chemezov, the company’s management would have to be careful with dismiss and to seek a compromise with the local authorities and the Ministry of labour in terms of employment of these people.

In addition, “AVTOVAZ” received a record loss in accordance with IFRS for the year 2015 in the amount of nearly 74 billion rubles, having increased it to three times compared to 2014. The company’s auditor E&Y report even expressed doubt about the company’s ability to continue as a going concern against the background of such loss and the amount of short-term obligations on 67,8 billion exceeded the current assets of the plant.

However, according to the analyst of VTB Capital Vladimir Bespalov, the loss of the enterprise could only partly contribute to the care of Andersson, the main reason was the difference in the vision of the President of “AVTOVAZ” and of shareholders in taking the company out of crisis.

Hope for the Frenchman

Elected President of “AVTOVAZ” Mora 55 years, currently he is the CEO of Renault in Romania, where he managed all commercial and production activities of the company. At the same time he holds the position of President-General Director of JSC Automobile Dacia SA.

Prior to joining Renault in 2000, Moore worked in companies producing automotive components such as Faurecia and Valeo. Place Mora on a post of the General Director of Renault in Romania from April 4, is the Executive Director of production and logistics for the region of Eurasia group Renault Yves Karakatsanis.

As the Executive Director of the analytical Agency “AUTOSTAT” Sergey Udalov, in the future there may be a division of responsibility between the President of AVTOVAZ and Chairman of the Board of Directors. “Andersson largely took the responsibility on himself, closed themselves on operations and strategy, now the powers of the President can be shared,” explains the expert.

The task of the “Rostec” in this context, according to Udalova, — to prevent the strengthening of foreign components in the production.

According to Bespalov, fundamental changes in the company will not. “AvtoVAZ” it is necessary to increase sales — and in this sense new appointment somehow will help to ensure that Nicolas Moore in collaboration with Renault and Nissan to increase exports, because the Russian market is still of great opportunities won’t open. Next, I think, will continue a policy of cost optimization. Staff, I think the cut will not be will be a natural decline, targeted reductions will be,” says the analyst.

In his opinion, for the automobile it is very important to maintain the quality, and especially the two new models that AVTOVAZ brought to the market, especially because they are marketed as models that can raise the image of the company.