PRESS: Russia’s AvtoVAZ can have net profit no earlier than 2018

MOSCOW, Jun 14 (PRIME) -- Russian truck producer AvtoVAZ can have a net profit again no earlier than in 2018, CEO Nicolas Maure told business daily Vedomosti in an interview published on Tuesday.

“The three major shareholders, Renault, Nissan and Rostec, are committed to a long-term future of AvtoVAZ and the Lada brand. On their behalf, they will provide support where necessarty, so that the company continue to operate. My main goal now is to take the company back to profitability. It will take some time, 2018 is the earliest date,” Maure said.

He said that the shareholders do not demand urgent and “crazy activities.” A return to profitability will be carried out step by step.

Maure said he will present an updated 2016 budget and a mid-term development plan at a meeting of the board of directors and shareholders in June, and this data will shape a roadmap for the future years. Financial decisions were scheduled approximately for September.

AvtoVAZ wants to raise the share of exports in sales to 20% in the next five years, including the CIS, from the current 10%.

AvtoVAZ said in February that its net loss nearly tripled to 73.851 billion rubles in 2015. State-owned industrial corporation Rostec, whose joint venture with the Renault-Nissan alliance holds 74.5% in AvtoVAZ, said then it planned to take measures to bailout the company.

(64.7077 rubles – U.S. $1)

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