5 Oct 2009

Ultimatum issued to Renault

12:28 pm on 5 October 2009

Russian Prime Minister Vladimir Putin has delivered an ultimatum to Renault.

The French car company has a 25% stake in Russia's Avtovatz, which makes the Lada brand.

Mr Putin says Renault has to offer more support or it will have its holding cut.

The BBC reports car sales in Russia have collapsed in recent months.

Avtovatx is in financial trouble and has announced plans to slash a quarter of its workforce.