Carlos Ghosn to Step Down as AvtoVAZ Chairman Amid Russian Restructuring
Renault-Nissan's Carlos Ghosn will be replaced as AvtoVAZ chairman by Rostec's Sergei Skvortsov from 23 June, reflecting shifting control during a turbulent period for Russia's auto sector.
Carlos Ghosn will step down as chairman of AvtoVAZ, the company behind the Lada brand, with Sergei Skvortsov of Rostec set to take over from 23 June. The change, announced by Renault-Nissan, comes as the Russian carmaker continues to face deep financial and operational challenges.
Skvortsov is a senior executive at Rostec, the Russian state-owned conglomerate that holds a large stake in AvtoVAZ. The move shifts formal control of the board towards Russian interests, though both Ghosn and Rostec CEO Sergei Chemezov are expected to remain active in the company’s strategic direction through Alliance Rostec Auto BV, the holding company controlled by Renault-Nissan.
Leadership changes follow management shake-up
The chairman switch comes just months after a change in AvtoVAZ’s executive ranks. In April 2016, Bo Andersson, who had been installed by Ghosn in 2014 to lead a turnaround, left the company. He was replaced by Nicolas Maure, previously head of Renault’s Dacia division. Andersson’s departure followed public criticism from Chemezov over job cuts and the handling of local suppliers, reflecting the tension between AvtoVAZ’s international and Russian stakeholders.
AvtoVAZ’s headquarters in Togliatti remain heavily dependent on the company’s fortunes, with the local economy suffering from the carmaker’s difficulties. Russian car sales have fallen sharply since 2012, hit by sanctions, a weak rouble and declining oil revenues. The market has contracted by nearly half in four years, with further declines expected in 2016.
Ongoing role for Ghosn and Renault-Nissan
While Ghosn is stepping down as chairman, he will continue to influence AvtoVAZ’s direction as chairman of Alliance Rostec Auto BV. This entity holds a controlling stake in AvtoVAZ and serves as the main vehicle for Renault-Nissan’s involvement in the Russian market. The alliance’s continued presence signals that, despite the boardroom changes, Renault-Nissan remains committed to its Russian operations for now.
