Article: AvtoVAZ seeks $1 billion to help dealers; Russia's largest carmaker has plans to establish its own financial arm.(News)

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 ...

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