The next President of "AVTOVAZ" will be again the foreigner

16 April 2018

And he will come again from Dacia

February 2018 became known Nicolas Moore will leave the post of "AVTOVAZ". Now the Russian manufacturer has announced the name of the new head. They were selected Yves Karakatsanis.

the era of the "Vikings"

As you can see, during the "Vikings" in the history of "AVTOVAZ" is still far from complete. It all started in 2013, when the company was headed by Bo Andersson. By the time the Swedish top Manager was already known to the whole country because he had worked at the "GAZ Group". With Andersson usually associated new achievements "Lada", including the issue of "Vesta" which is an old first brand new car in the last couple of decades (if not to take into account a variety of updates, restyling, borrowing other people's models and so on).

However, due to the launch of the new machines, the refusal of the producers of low-quality components, the devaluation of the ruble and falling demand indicators "AVTOVAZ" only worse: losses at all-time highs. Not surprisingly, the leadership decided to get rid of the reformer.

Nicolas Moore vs loss

In March 2016, the President of "AVTOVAZ" became Nicolas Moore. He has already scored high-profile projects, but in the period of its operation has been substantially reduced losses from 44.8 billion rubles in 2016 to 9.66 billion in 2017 (according to international financial reporting standard).

Among the positive factors, the experts noted overall growth in the market, the strengthening of the ruble, the rise in price of cars and the appearance of "Lady" more and more expensive versions. In February 2018, Nicolas Moore predicted a return to profitability on the horizon of two years, i.e. by 2020. It is now clear that the responsibility for achieving this result the answer will be a different person.

From the first of January 2018 Nicolas Mohr was appointed COO of the Eurasia region and senior Vice President of Renault. In the Russian company noted that Mr. Moore will continue to monitor the financial health of AVTOVAZ and implementation of medium-term development plan of the company.

Where they came from Yves Caracatsanis

currently, Yves Karakatsanis holds the post of General Director of Renault in Romania, where he is responsible for all commercial and production activities. He is also President and CEO of Automobile Dacia SA, which today is the largest private company in Romania, and Dacia brand — one of the fastest growing automotive brands in Europe. It turns out that Mr. Karakatsanis in the footsteps of Nicolas Mor: he also came to AVTOVAZ from Dacia.

Yves Karakatsanis began his career in 1992. Before coming to Romania, he at different times occupied the position of the industrial Vice-President of the Eurasia region and Vice President for the supply chain.

the Recapitalization of AVTOVAZ

In recent years, "AVTOVAZ" is going through other changes. Earlier, the head of Rostec Sergey Chemezov told journalists that the state Corporation and Renault in October will complete the recapitalization of AVTOVAZ by 107 billion rubles. The result of this operation, Alliance Rostec Auto B. V. will increase the share in the Russian automaker from 64.6 to 83.5 %. Completion is scheduled in October 2018.

the Recapitalization of AVTOVAZ is held in two stages with the aim of restructuring the debt of the company. The first issue of the automaker in the amount of 26 billion rubles took place in December 2016. It was bought by Renault and the minority shareholders, including "the Renaissance of groups". In the beginning of 2018 was held on the conversion of debt of "AVTOVAZ" for a total of 61,4 billion in shares. Rostec and Renault stepped in favor of Alliance Rostec Auto B. V. of the right of claim for the debts of the automaker by 30.7 billion rubles each.

the Final transaction is scheduled for October 2018. Then rostec have to make another 20 billion rubles to the statutory purpose of "AVTOVAZ" without increasing the share capital.

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