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Avtovaz needs manager from Renault or Nissan — RSPP head

March 10, 2016, 15:42 UTC+3
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© Sergei Fadeichev/TASS

MOSCOW, March 10. /TASS/. Russia’s carmaker Avtovaz should invite a manager who is experienced in working on global markets, for example from Renault or Nissan, head of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin told reporters on Thursday.

"Perhaps they should call a more advanced manager from Renault or Nissan, in my opinion. I would do that. Not from Rostec (Russian state-owned corporation dealing with development, manufacturing and export of high technology civil and defense products -TASS) although they have good managers, but I would give an opportunity to foreign partners with an experience of working on global market," he said.

Shokhin said that Avtovaz should keep the feeling of a global company.

According to the company’s financial report under IFRS, in 2015 the loss of loss totaled 74 billion rubles ($1.05 bln). The company also marked negative cash flow and stated that without the support of shareholders it may not be able to pay its debt and continue operations.

On Wednesday, head of the Rostec state-owned corporation, which is one the shareholders of Avtovaz, Sergey Chemezov blamed head of Avtovaz Bo Andersson for the loss, saying that the manager did not use resources of Russian suppliers. Instead Anderson chose for an easy solution and signed contracts with the suppliers of its partners - Renault and Nissan, Chemezov said.

After the report about Avtovaz’ loss Rostec and Renault said they are thinking how to restructure the company's debt. Additional capitalization by investing more funds in the company's share capital and the conversion of part of the debt are seen as possible solutions.

The shareholders also intend to change the general director at the board of directors’ meeting, which is scheduled for March 15th. Previously, the Vedomosti newspaper reported, citing its own sources that the new head of the carmaker may be a foreigner - for example, the manager of Renault.

The Renault-Nissan alliance holds the controlling stake in Avtovaz, the blocking stake belongs to Rostec. These shareholders manage the company through the Alliance Rostec Auto BV.

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