Report: Russian Prime Minister Putin tells Renault to put up or get out

[Stéphane Dumas]

from Autoblog, about Renault's investments in AvtoVAZ aka Lada
http://www.autoblog.com/2009/10/26/r...up-or-get-out/

[BlackGTP]

Sounds like working with the Russians is like working with the Mafia.

[JBsZ06]

Originally Posted by BlackGTP

Sounds like working with the Russians is like working with the Mafia.

I think you nailed it.

Putin says put up an additional 850 million dollars or get out? WTF??

Putin's insane and I truly hope coskata biofuel works out for us. I like to see the oil sheks pound sand and Putin pull his pud.

thanks for the heads up.

[Canyonaro]

He is insane, and was in charge when I lived there. Lada actually is pretty a great car company (if you want a cheap car), just not to US safety standards.

[nota]

Heard recently that Lada was facing bankruptcy - iirc 100,000 employees producing 130,000 cars

[Bravada]

Sounds like working with the Russians is like working with the Mafia.

Not to say Putin is your benevolent democracy-loving non-interfering friendly prime minister, but they are saying that either Renault ponies up the cash or the Russian government does, but as they are increasing the equity, Renault's shares get diluted and their influence will be minimized. Just as well you might say that the US administration is like mafia telling the previous GM and Chrysler shareholders to suck it up when their shares were nixed and replaced by a government holding. Same happened in Korea - the KDB asked GM to invest in additional equity to keep the company afloat.

Renault isn't really overly decisive on what do they want from Lada given the current crash of the Russian and global markets, the Russian government (still a majority shareholder, so no deus ex machine government intervention as in the case of GM or Chrysler) acts as a majority shareholder telling the minority one to join in the effort or back off.

Lada actually is pretty a great car company

You are being delusional. Both Lada cars and the VAZ company are worthless (this is the third time they are going bankrupt if memory serves me well!). GAZ had a bit going for it, but they just couldn't find the buyers.

[Canyonaro]

Originally Posted by Bravada

Not to say Putin is your benevolent democracy-

Putin used to be part of the KGB, and still on occasion acts like it. He likes power and being the bully.

Originally Posted by Bravada

You are being delusional. Both Lada cars and the VAZ company are worthless (this is the third time they are going bankrupt if memory serves me well!). GAZ had a bit going for it, but they just couldn't find the buyers.

I was talking about the cars, not the business plan. For most in Russia who are even lucky enough to afford a car, a Lada works well for these people, cheap and somewhat reliable.

[Bravada]

For most in Russia who are even lucky enough to afford a car, a Lada works well for these people, cheap and somewhat reliable.

Please read that again. You are being unfair and patronizing. And if the LAda cars worked so well, why does everybody prefer buying a 10+ year old JDM import, Kazakhstan-assembled Hyundai or a Chinese car? The Lada cars are crap, they would be crap even if you couldn't afford anything else. If the North Koreans seem better off with an old Fiat Siena...