Renault Discussing Joint Venture with Russian Plant

12/03/96

Reuters reports that French carmaker Renault SA says it is negotiating a possible joint venture to assemble Megane cars in Russia. A Renault spokesperson said that Renault was hoping for a deal to produce Megane cars at the Moscow-owned Moskvitch, although no agreement had yet been reached.

After Russian Prime Minister Viktor Chernomyrdin visited Renault's Paris headquarters the spokesperson said, "nothing is decided. Nothing has been signed. We're just in discussions."

The negotiations, which were first announced in June, were inspired by an accord last February that arranged for the delivery of Renault engines to the Moskvitch plant. That contract was not in effect because financing for it has not been set. The spokesperson said that it hinges on an agreement between the French and Russian finance authorities.

Paul Dever -- The Auto Channel