Russians select Renault over GM

General Motors Corp. has lost out to French rival Renault SA in the bidding to acquire a major stake in Russia's largest automaker, OAO AvtoVAZ. The deal gives Renault a boost in the rapidly growing Russian market and leaves GM on its own to increase its manufacturing presence in the region. A Renault spokeswoman said Friday that a deal had been agreed to with state-controlled AvtoVAZ. Renault's CEO, Carlos Ghosn, was expected to attend a press conference today at AvtoVAZ headquarters in the Russian city of Togliatti.

"I can confirm that AvtoVAZ has selected Renault," said Claire Martin of Renault in Paris.

Details of the acquisition were not made public, but Russian media reports said that Renault would buy a 25 percent stake in AvtoVAZ, valued at about $1.4 billion. There was no comment from GM, which had said Tuesday that it was interested in a significant stake in AvtoVAZ. More at Detroit News