Nissan, Renault to invest up to $2 bn in Russia

Nissan, Renault to invest up to $2 bn in Russia

Tokyo: Nissan Motor Co and its partner Renault are planning to invest as much as $2 billion in Russia by 2015, Japan’s Nikkei business daily reported on Friday, citing the Russian government.

They will join with Russia’s biggest carmaker AvtoVAZ, which is 25%-owned by Renault, aiming to boost combined sales to at least 1.6 million vehicles per year by 2015, the report said.

The move comes after the Russian government asked foreign carmakers to boost their production in return for continued special treatment on taxes on imported car parts, the report said.

Nissan and Renault have plans to take a combined stake in the Russian company of at least 50%, with Nissan taking more than half of the remaining 25%, Carlos Ghosn, chief executive of both Nissan and Renault, told Reuters in February.