car industry
Renault ceases activity in Russia
The logo of the French car manufacturer Renault. Photo: Uli Deck/dpa
© dpa-infocom GmbH
The French sell all shares in Renault Russia to the city of Moscow. She already has precise plans as to which vehicles should roll off the assembly line under new ownership in the traditional plant.
The French carmaker Renault is completely ceasing its activities in Russia due to the war in Ukraine and is giving up all its shares in the company.
As the group announced in Boulogne-Billancourt, Renault is selling all its shares in Renault Russia to the city of Moscow and its stake in the manufacturer Avtovaz to the Central Institute for the Promotion of Automobile and Engine Manufacturing (Nami). There is a buyback option for Avtovaz shares over the next six years.
“Difficult but necessary decision”
“Today we made a difficult but necessary decision,” said Renault CEO Luca de Meo. Renault is keeping the option open to return to Russia in a different context. The value of the investments in Russia of around 2.2 billion euros will be booked out in the first half of 2022. “I have confidence in Renault Group’s ability to continue accelerating its transformation and exceeding its mid-term goals,” said de Meo.
Moscow Mayor Sergei Sobyanin announced that the Soviet cult car Moskvich should be produced again in the factory in the future. Regarding Renault’s decision, he said: “It is your right, but we cannot allow a collective with many thousands of workers to remain unemployed.” That is why it was decided to take over the plant and restart car production under the “historic Moskvich brand”. Efforts are being made to retain most of the workforce.
«In 2022 we will open a new chapter»
The technology partner for the rebirth of the Moscow automobile plant Moskvich will be the Russian car giant Kamaz. In a first stage, combustion engines should be produced. Electric cars should also be added later. Kamaz and the Ministry of Industry and Trade are also in the process of locating the production of a maximum number of suppliers in Russia, Sobyanin said.
The Moscow plant has a long and glorious history. Ford produced there almost 100 years ago. The Moskvitch was built there for decades, production of which was discontinued in 2001. Cooperation with Renault began in 1998, Sobyanin continued. The Logan, Duster and Sandero models rolled off the assembly line at the plant. “In 2022 we will open a new chapter in the “Moskvitch” story.”