Pfffft: The Air Escapes From The Big Nissan-Renault-AvtoVaz Takeover Story
Yesterday, The Nikkei was all worked up about a takeover of Russia’s largest automaker AvtoVaz by the Renault-Nissan Alliance. The Nikkei became so excited that it forgot simple logic. More on that here. The Nikkei had it on not so good authority that Nissan would soon buy 25 percent of the Russians, and together with Renault’s 25 percent and change, Japan and France would finally achieve what had been tried before: Rule Russia. We had our doubts.
Do you hear the big hissing sound? That’s the lukewarm air coming out of the story.
Why the fascination of the Germans with Chemezov? He’s a colorful man. He worked as an undercover agent in Dresden, East Germany, while Vladimir Putin was the KGB rezident there. His official resume glosses over this tidbit. Was Chemezov telling theb truth? Did Interfax write it as it was said? We’ll never know.
There are other parties in Russia that hold AvtoVaz stock. They may or may not be interested in selling. But currently, that’s all there is to the story.
L'avventura on Jun 18, 2011
Bertel, your off-base criticism for the Nikkei is a bit perplexing considering how much you regurgitate their stories on TTAC. Last time you got worked up by Nikkei calling the Renault-Nissan 'third' place in sales. You've probably noticed since that its been repeated by pretty much every other publication. Also, if you've followed the Renault-Avtovaz story you would know that Nissan taking 25% actually dates back to a WSJ story back in November of last year, and was agreed upon by Putin himself. http://online.wsj.com/article/SB10001424052748704462704575590600772606686.html I would agree that Russian business tends to be unpredictable and that situation is fluid, but you're missing the real story here. The real story is the deal itself. As we've seen with Ghosn management style, taking a controlling stake is crucial for Renault-Nissan's investment in the Russian automotive market to go forward. We've seen this when Renault took Nissan, Dacia, and Samsung. Ghosn management style is not about acquiescence. Taking any smaller stake less than control would mean that deal will have severe repercussion in Renault-Nissan's Russian investment. The risk of managerial bickering with Russian counterparts weighs heavily without a controlling stake. There is a lot more going on here than how Nikkei, or anyone else, is reporting this...