Aug. 25 (Bloomberg) -- Russia is creating a holding company that will combine state-owned stakes in two of the country’s biggest carmakers to help the struggling industry amid the worst economic slump on record.

Russian Technologies, with interests ranging from autos to arms, will consolidate its stakes in carmakers OAO KamAZ and OAO AvtoVAZ and enginemaker OAO Avtodizel in a subsidiary called Rosavto, Chief Executive Officer Igor Zavyalov told state broadcaster Vesti TV today. KamAZ CEO Sergei Kogogin will head the unit, Zavyalov said.

Russian sales of new cars and light trucks plunged 58 percent in July from a year earlier as rising unemployment, a devalued ruble and inflation reduced disposable income, according to the Moscow-based Association of European Businesses. AvtoVAZ and KamAZ have suspended production in August.

“Consolidation of assets and human resources is the most prudent solution during the crisis,” Zavyalov said. “We made that decision based on the situation that world industries find themselves.”

Rosavto will own 38 percent of KamAZ, 25 percent of AvtoVAZ and 30 percent of Avtodizel, Kommersant reported last week.

France’s Renault SA owns 25 percent of AvtoVAZ, while Germany’s Daimler AG has a 10 percent stake in KamAZ. Zavyalov said both companies were alerted to the reorganization, though Russia was not legally required to do so.

AvtoVAZ said today that Boris Alyoshin will step down as CEO tomorrow and remain on the board. Igor Komarov, the executive vice president of AvtoVAZ, will take over the carmaker until the next board meeting, Zavyalov told Vesti.

To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net.

Last Updated: August 25, 2009 11:28 EDT