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. Last Updated: 07/27/2016

Alyoshin Tapped to Head Up AvtoVAZ

Federal Industry Agency head Boris Alyoshin said Thursday that he was set to become president of AvtoVAZ.

"This is a huge company and a very good position. You can't spend your whole life as a civil servant," he said.

But the appointment could hinder negotiations with foreign strategic investors, as Alyoshin has gained a reputation for favoring consolidation in the domestic automotive industry.

In a proposal signed in late 2005 by President Vladimir Putin, Alyoshin called for the formation of a single corporation comprising car, truck and bus production.

"Essentially, only one Russian company -- AvtoVAZ, probably teaming up with other domestic makers -- can potentially compete with large foreign concerns," Alyoshin wrote in a letter accompanying the proposal at the time.

Alyoshin indicated on Thursday that the carmaker might have to rely on international partnerships to halt the company's weakened position in the market, however.

"The main idea is to move forward with a strategic partner, orient ourselves toward the world market and fight rising costs," he said.

Foreign carmakers are piling into the domestic market, where sales are rising by double-digit figures every year as incomes rise.

Alyoshin said he would take up his new position in a matter of days. He added that his position at the Federal Industry Agency would be filled by his deputy, Andrei Dutov.

Kommersant reported Thursday that Putin personally approved Alyoshin's appointment.

Reuters, MT