- Mar 31, 2009
Putin Power: Even Russian automakers to get a bailout?
Lada C Concept - Click above for a high-res gallery
According to The Detroit News, Avtovaz, Russia's largest car maker and the home of Lada, is in line for government help. The Russian car industry is faring even more poorly than its counterpart in the U.S., with a 60% drop in sales being predicted. To assist Avtovaz with payments to creditors, a lifeline of more than 20 billion rubles is being discussed (upwards of $588 million USD), which would be close to Avtovaz's total debt to suppliers and banks.
It is also being reported that Avtovaz is looking to sign an investment memorandum for 90 billion rubles ($2.7 billion USD) with a cartel of state-run banks. Compared to the sums being doled out in the U.S. that's not a lada money (sorry, had to...), but if Avtovaz can get the agreements signed, it should be in better standing.
[Source: The Detroit News]