“AvtoVAZ” JSC announced the closure of the deal to acquire a share in the authorized capital of “Nissan Manufacturing RUS” LLC. The relevant documents were signed by AvtoVAZ President Maksim Sokolov and CEO of FSUE “NAMI” Fyodor Nazarov today, on February 07, 2023. Earlier, the deal was approved by the Government of the Russian Federation.
As part of the agreements, “AvtoVAZ” JSC acquired a 99% share in the authorized capital of “Nissan Manufacturing RUS” LLC at a 1 Euro price with payment in ruble equivalent at exchange rate of the purchasing date. The deal will retain a call-option for the NISSAN company to repurchase former assets in Russia within 6 years if in the future a corresponding decision is made and approved by the Government of Russia.
Albert Karimov, Deputy Minister of Industry and Trade of Russia: «The main aim of our joint work today is to increase the volume of production and supply in the Russian car market as much as possible. However, in response to the current challenges, AvtoVAZ team has not only to launch car production at the site in St. Petersburg, but also to ensure steady localization growth of products manufactured there. Work resumption of the plant will also provide growth of industrial production index of the region and preservation of jobs”.
Maksim Sokolov, President of “AvtoVAZ” JSC: «AvtoVAZ confirms plans to resume car production at the former NISSAN plant in St. Petersburg already in the 2HY 2023. These will be new LADA brand models of the C and D segments. Production output this year may reach up to 10K units. High professional competencies of our team may further ensure the increase of production output up to almost any values if there is demand in the Russian market. In 2024-2027 we will localize these cars with the key task to use to a greater extend capabilities of more than 30 regional component suppliers. At the same time, the component industry to developed successfully, AVTOVAZ counts on the state mechanisms to stimulate suppliers, for example, such as preferential loans of Federal and Regional Industry Development Funds. It is extremely important, these mechanisms to be provided with sufficient funding”.
SOURCE: Lada
