The General Annual Shareholder meeting of JSC AVTOVAZ took place in Togliatti on June 25, 2015, in the presence of Carlos Ghosn, Chairman & CEO of the Renault-Nissan Alliance, and Sergey Chemezov, General Director of the State Corporation Rostec. The Board of Directors of the Company appointed three new members. The annual report and annual accounting reports have been approved and also the decision has been taken not to pay dividends for preferred and ordinary shares of the company.
According to the decision of the Board of Directors of JSC AVTOVAZ, Mr. Ghosn will continue to be the Chairman of the Board, and Mr. Chemezov will remain Vice-Chairman of the Board. The Board of Directors of JSC AVTOVAZ includes three new members: Jean-Christophe Kugler (Senior Vice President, Chairman, Eurasia Region, Member of Renault Group Management), Trevor Mann (Chief Performance Officer, Nissan Motor Co., Ltd.) and Jeremie Papin (Vice-President, Strategy & Business Development, Renault Group). The members Bruno Ancelin, Serge Yoccoz and Vincent Cobee left the Board of Directors of JSC AVTOVAZ.
At the annual general meeting of shareholders of JSC AVTOVAZ also confirmed its mid-term targets – reach for 20% of the Russian car market, achieve 6% operating profit and free cash flow. The company plans to release brand new models Vesta and XRAY this year as a part of its product offensive – the total investment in these projects will amount to 30 billion Rubles in 2015. Funds will be used for engineering, preparation of the production line in Togliatti and Izhevsk, the component base and staff.
The meeting attendees were also briefed on the key performance indicators of AVTOVAZ, which have been improving despite the economic decline Russia is facing. LADA sales performance in the first five months improved by 1.3 percentage points to a 18.7% market share. 88% of LADA cars production is going straight from the line without defect (opposed to 56% 18 months ago) and defects off the production line went down in 2014 by 42%.
The company also benefited from a vast range of governmental support. From January to May 2015 AVTOVAZ sold 38% of its cars on the resumed recycling program. Other support including trade-in, LADA Finance support and the government fleet renewal program contributed to the performance of AVTOVAZ.
