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Article: AvtoVAZ seeks $1 billion to help dealers; Russia's largest carmaker has plans to establish its own financial arm.(News)
- Article from:
- Automotive News Europe
- Article date:
- October 27, 2008
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Luca Ciferri
Automotive News Europe
TOGLIATTI, Russia * AvtoVAZ needs a $1 billion (about [euro]770 million) loan to keep its business running.
Russia's largest automaker requires the cash to finance the cars it delivers to its dealers, Boris Aleshin, AvtoVAZ president, said in an interview here.
The loan will allow AvtoVAZ, which makes Ladas, to pay its bills and resume regular deliveries of cars to dealers, while giving the retailers adequate time to pay for the vehicles.
Without the loan, AvtoVAZ would have to halt production to prevent factory inventories rising to a critical level.
About 450 Russian ...