Russian state's ambitious plans for automotive sector

Aug 31 2009 by John Cranage, Birmingham Post

AvtoVAZ, Russia’s largest car maker, is replacing its chief executive as the state pursues ambitious plans for the automotive sector, including a key role in the acquisition of Opel from General Motors.

AvtoVAZ, in which French car maker Renault owns a one-quarter stake, said that Boris Alyoshin was stepping down as chief executive of the company, best known for making the Lada. It did not name his replacement.

A source close to the group said the likely candidate would be Igor Komarov, an adviser to the head of state industrial conglomerate Russian Technologies, Sergei Chemezov, who is a close ally to Prime Minister Vladimir Putin.

Russian Technologies, like Renault, controls a 25 per cent stake in AvtoVAZ and is planning to create a new automotive giant to manage its stake in the company. Analysts have said any Russian-controlled stake in Opel could also be folded into it.

They have said that the large stake state-controlled Sberbank, which is the financier of the Magna bid for Opel, would get if Magna acquires the European car maker would be quickly passed on to Russian Technologies.