Russia Won't Let Car Giant Avtovaz Collapse

Oct. 5, 2009
Putin wants all shareholders to take part in securing the future of the company.

Russia will not allow its troubled biggest carmaker Avtovaz to collapse, Prime Minister Vladimir Putin announced at a meeting on Oct. 5 which included an executive from its 25% shareholder Renault.

"We understand that if we do nothing ... the company will cease to exist. We will not allow this to happen," Putin told the meeting. "I want all the shareholders to take an equal part in the joint work" of helping the company."

Along with Renault, the other major shareholders in Avotvaz are Russian brokerage Troika Dialog and state firm Russian Technologies, which have around 25% each.

Putin warned Renault last week that its stake in Avtovaz could be diluted unless the French auto giant provided help for the crisis-ridden firm, which has already announced plans to cut a quarter of its workforce.

Copyright Agence France-Presse, 2009

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