Renault resizing AvtoVAZ stake

Renault resizing AvtoVAZ stakeChief Executive Carlos Ghosn commented on Monday that the French car maker, Renault shall adjust the capacity of its 25 percent stake in the Russian AvtoVAZ if asked by the Russian government.

Renault bought the stake in AvtoVAZ for $1 billion in 2008, but the same got hampered due to the Russian car market going on a slow note due to the recent economic crisis.

After the AvtoVAZ group got piled under the debt it is now under speculation of many that whether the French automaker Renault would prepare for backing out from its stake.

According to the CEO, Ghosn, if there is a change of around 25 percent in the stake, and then the same shall be decided by the Russian Government rather than the company itself.

Further Ghosn commented that the stake in the maker of the Lada may not be sold within the next two years.

On an unusual meet with Putin in Moscow, Ghosn left the city centre to meet a foreign executive after the meet with the influential political leader.