MOTOR

German chip maker Infineon more optimistic for full-year

German computer chip maker Infineon revised upwards its outlook for the full fiscal year on Thursday after better-than-expected results for the start of 2012.

Infineon, which runs its business year from October to September, said its focus on computer components for the automobile industry had helped bolster its result.

Its market share in the automotive sector has now risen to 9.8 percent, it said in a written statement.

Infineon said it now expected revenue in the 2012 fiscal year to drop less than five percent and that its operating margin would be about 15 percent, at the top end of its previous forecast of 10 to 15 percent.

“Business was better in the second quarter than expected,” chief executive Peter Bauer said in the statement.

“Our focus on key challenges for today's society -- energy efficiency, mobility and security -- is also proving its worth during difficult economic times,” he added.

Revenues from January to the end of March fell one percent on the year to986 million euros, while net profit fell by 81 percent to 111 million euros. However, compared to the first quarter of the current year, which analysts from the sector judge to be more significant, both results improved.

The figures were also better than those forecast by analysts polled by Dow Jones Newswires.

AFP

Renault Nissan pays $750 m for control of Avtovaz-Lada

Renault and its Japanese subsidiary Nissan announced a big step in the Russian market on Thursday, heading for control of the Lada brand to become the third-biggest auto force in the world.

The move by Renault Nissan to control Russian auto group Avtovaz, costing 750 million dollars, highlights the importance of the Russian market, the third biggest for the three manufacturers, after China and the United States.

Renault, which controls Nissan, will take control of Avtovaz by stages, the companies said, but the outline deal is subject to an audit of Avtovaz and its Lada operations.

Since 2008 Renault has owned 25 percent of Avtovaz. The deal, organised via a new joint holding company, will cost Renault 300 million dollars ($227.3 million). Nissan, which will not own any of the capital, will provide 450 million dollars.

The chief executive of Renault Nissan Carlos Ghosn said: “The agreement reached today marks an extra step in a process of increasing broad collaboration, which is contributing to the modernisation of the leading firm in the Russian automobile industry.” He said that “Renault and Nissan are going to pursue transfers of technology towards Russian factories, while our Russian colleagues will be increasingly present in the multi-cultural management of the alliance.” The deal, under negotiation for months, will make Renault-Nissan-Avtovaz the third-biggest auto group in the world. The statement said that the total sales of cars and commercial vehicles in Russia, across all brands, amounted to 2.65 million vehicles in 2011 and was expected to rise to 2.9 million in 2012.

Renault Nissan and Avtovaz accounted for 878,990 of this total, and of their production 578,387 vehicles bore the Lada brand.

This means that for the alliance, Russian was the third-biggest market after China and the United States. Avtovaz owns one of the biggest car factories in the world at Togliatti, a town on the banks of the Volga River about 1,000 kilometres from Moscow where the company has its headquarters. It wants to raise production to nearly 1.4 million vehicles per year by 2015.

Under an agreement with Russian state group Russian Technologies and investment bank Troika Dialog, Renault Nissan will end up owning 67.13 percent of a holding company.

The rest of this holding venture will be owned by Russia Technologies.

The holding company will in turn own 74.5 percent of Avtovaz and the rest will be quoted on the stock market. The holding venture will buy 20 percent of Avtovaz owned by Troika Dialog by 2014, the statement said but did not say how much would be paid for this stake. Debt owed by Avtovaz will be restructured by Russian Technologies which will then receive money raised from the expected sale of non-strategic assets owned by Avtovaz.

AFP

Renault pays $750 m for control of Russia’s Avtovaz

French auto giant Renault and its Japanese partner Nissan announced a deal Thursday that gives them control of Avtovaz, owner of the iconic Lada brand, and greater access to the fast growing Russian market. The move by Renault-Nissan move will cost 750 million dollars and highlights the importance of the Russian market, the third biggest for the manufacturers after China and the United States.

Renault, which holds a 44 percent stake in Nissan, will take control of Avtovaz by stages, the companies said and the outline deal is subject to an audit of Avtovaz and its Lada operations.

In 2008, Renault paid one billion dollars to acquire 25 percent plus one share in Avtovaz. The deal, organised via a new joint holding company, will cost Renault 300 million dollars ($227.3 million). Nissan, which will not own any of the capital, will provide 450 million dollars. “The agreement reached today marks an extra step in a process of increasing broad collaboration, which is contributing to the modernisation of the leading firm in the Russian automobile industry,” Renault-Nissan head Carlos Ghosn said.

Ghosn said “Renault and Nissan are going to pursue transfers of technology towards Russian factories, while our Russian colleagues will be increasingly present in the multi-cultural management of the alliance.” The deal, under negotiation for months, will make Renault-Nissan-Avtovaz the third-biggest auto group in the world.

The statement said that the total sales of cars and commercial vehicles in Russia, across all brands, amounted to 2.65 million vehicles in 2011 and was expected to rise to 2.9 million in 2012.

Renault Nissan and Avtovaz accounted for 878,990 of this total, and of their production 578,387 vehicles bore the Lada brand. Avtovaz owns one of the biggest car factories in the world at Togliatti, a town on the banks of the Volga River about 1,000 kilometres (600 miles) from Moscow where the company has its headquarters.

It wants to raise production to nearly 1.4 million vehicles per year by 2015.

Under an agreement with Russian state group Russian Technologies and investment bank Troika Dialog, Renault Nissan will end up owning 67.13 percent of a holding company.

The rest of this holding venture will be owned by Russia Technologies.

The holding company will in turn own 74.5 percent of Avtovaz and the rest will be quoted on the stock market.The holding venture will buy 20 percent of Avtovaz owned by Troika Dialog by 2014, the statement said but did not say how much would be paid for this stake.

Debt owed by Avtovaz will be restructured by Russian Technologies which will then receive money raised from the expected sale of non-strategic assets owned by Avtovaz.

AFP