Posted on March 03, 2008 by Fiona Hilliard

What do you call a new look Lada?  No joke-Lada, the butt of many a cheap car gag is poised for a revival backed by a partnership agreement between its owner Avtovaz and French carmaker Renault. 

On Friday, the two companies signed a $1 billion (€659.414538) deal, with Renault acquiring a 25% stake in the company. 

The deal pushes the Renault-Nissan-Avtovaz alliance into the third position globally after General Motors and Toyota. 

Commenting on the new partnership, Global Insight automotive analyst Paul Newton said:  “Renault and Nissan will accelerate the rejuvenation of the Lada brand in Russia, rather than using their new partner as a launch-pad for their own products.”

Renault’s cash and technology boost is the latest in a line of billion-dollar investments by global automotive giants who are desperate to enter Russia’s booming car market.
According to Automotive News Europe, Russia has already become the number one market for six of Asia’s leading car makers.