Mordashov is CEO of Russia's largest steel producer, Severstal [RTS: CHMF], the automaker's parent company.
"My decision to cease being a Severstal-Avto shareholder is motivated by a desire to concentrate on the steel business, which requires profound personal involvement," Mordashov said in a news release.
He added that the automaker has grown into a large independent business in recent years.
Shvetsov said the deal was closed in late January, enlarging his stake to 58%, while the remaining 42% of shares were being floated.
The general director declined to announce the value of the deal, saying only that it was closed at a market price. He said the company's value was $976.7 million.
He denied that he had any differences with Mordashov. "Alexei Mordashov has always prioritized steel production, whereas I was not fond of the steel business," Shvetsov said.
He announced he has sold his assets in the steel business, totaling 1.5% of shares.
The top manger also revealed plans for a realignment of the board of directors. He said Mordashov would stay on the board, and that he would stay on Severstal's board.
But he said he would also attract world-known experts in the automotive industry as independent directors.
Board member David Herman, a former vice president of General Motors, will head Severstal-Avto's board.
Shvetsov said the company will buy out up to 5% of shares or hold any additional issue in line with plans for an option program to attract foreign experts.
"We hope corporate management will be close to ideal after this," he said. He did not rule out that the name of the company might change and that the company might find a strategic partner among foreign concerns.
He said his company was the easiest way to enter the Russian automotive market, which holds great appeal for foreign carmakers.
Severstal-Avto produces Russian UAZ off-road vehicles, light trucks and minibuses, and assembles Japanese Isuzu trucks, South Korean SsangYong and Italian Fiat cars.
