PARIS -- Renault will sell its remaining 6.5 percent stake in truckmaker Volvo as it seeks to cut debt and boost investment in carmaking.
The sale will raise 12.8 billion kronor ($1.92 billion) and ends Renault's 11-year run as the Swedish truckmaker's largest shareholder.
The automaker said it would use the proceeds to fund domestic and international investments as well as to reduce automotive net debt.
"These investments are required for the preparation of the group's future in order to follow the rejuvenation program of the range, strengthen the competitiveness of its European plants and foster the international expansion of Renault," the company said today in a statement.
Renault is expanding in global growth markets such as Russia and China to reduce its dependence on the weak European market where its sales fell 18 percent through October.
"We will use the money to invest in France and, especially, in China and Russia where growth is strong," a Renault spokesperson told Automotive News Europe.
Renault and partner Nissan Motor Co. on Wednesday signed the final agreement to take control of Lada maker AvtoVAZ in Russia and invest 23 billion rubles ($742 million) in the new venture.