Renault to invest in AvtoVAZ

MOSCOW, Oct. 6 (UPI) -- Russian officials said French automaker Renault confirmed it would invest further in AvtoVAZ, maker of over 25 million Lada cars since 1970.

"Renault confirmed yesterday it was prepared to invest in the development of AvtoVAZ, including the provision of the most advanced technologies," First Deputy Prime Minister Igor Shuvalov told the RIA Novosti news service Tuesday.

"The main thing is that Renault has confirmed its strategic interest in the development of AvtoVAZ and believes that the acquisition of 25 percent plus one share was a strategically correct and justified decision," Shuvalov said.

The automaker, with a production capacity of 800,000 vehicles a year, is expected to shed 27,600 jobs to reduce its workforce to 75,000, RIA Novosti said.

Renault was prepared to provide technical expertise, data and personnel to the Russian company. "The volume of the investment will be specified following discussion of the plans for AvtoVAZ's development and corresponding valuation," Shuvalov said.