/ world today news/ A sensational statement was made by the government of Moscow, which took over the automobile plant in the capital from the French Renault. The city’s desire to keep jobs is understandable. The announcement of the restoration of the car brand “Moskvich” from the ashes caused discussions. What might it look like?
Renault’s share in AvtoVAZ became the property of NAMI. This is the Automotive and Motor Research Institute, which is subordinate to the Ministry of Industry and Trade. This is the official information of the department. An important condition of the deal is the option for Renault to buy back its stake in AvtoVAZ, which can be exercised within the next 6 years. Meanwhile, the Togliatti plant plans to assemble Lada models on its own Russian platform.
The fate of the Moscow plant of the French concern also became known. It completely passed into the hands of the Moscow government. It is curious that the mayor of the capital, Sergey Sobyanin, announced the resumption of the production of passenger cars at the Renault-Russia Moscow plant under the historic Moskvich brand. KAMAZ will become the main technological partner of the “Moskvich” plant. At the first stage, the production of classic cars with an internal combustion engine will be organized, and in the future even electric cars will be produced.
Previously, the Renault plant in Moscow produced the Renault Duster, Kaptur and Nissan Terrano SUVs. The capacity of the plant is 188 thousand cars per year. Renault’s total investment in the Moscow plant reaches 480 million euros.
Curiously, this is not the first time the Moscow government has bailed out the Moskvich plant. Cars under this brand began to be produced after the Great Patriotic War. In the 1990s, car assembly became subsidized. In 1996, the question of the factory’s bankruptcy arose. However, the Moscow government took the enterprise into trusteeship. It was decided to produce small batches of expensive business class cars on the Moskvich-2141 and Moskvich-2142 platforms. During this time, the quality of assembly and components dropped dramatically. Therefore, half of the problematic components and assemblies were replaced with imported analogues. But the bankruptcy of 1998 made this venture unprofitable. In 2001, the plant froze completely. Until Renault came along.
It is not known exactly what the new car with the “Moskvich” brand could be. So far, very little information has been provided. However, four scenarios can be assumed. First, the old Moskvich platform can be taken as a basis, and this car will literally rise from the ashes, like a phoenix bird.
Experts do not share the enthusiasm for the revival of the “Moskvich” brand.
“I consider it inappropriate to return to the Moskvich car now.” I don’t believe there is anything worth doing on this old platform. This “miracle”, which was a miracle even in the nineties, is scary to imagine in our time. This will be a shame for Russia. I support a new platform and new approaches,” says Vladimir Mozhankov, founder of “AvtoSpecCenter”.
It is curious that nearly 200,000 Moskvich cars are still registered in Russia (Avtostat data as of January 1, 2022). Most of them are in Moscow (15.6 thousand) and in the Altai Territory (12.9 thousand), and in other regions there are less than 10 thousand. But at least one copy of this brand is found in all other regions of the country, even in Chukotka (there are four Moskvich cars).
The second possible scenario is the creation of a car on the Renault Logan platform under the Moskvich brand. Similar rumors have already appeared in the market. “In all likelihood, this will not be a car on the Logan platform with the name Moskvich. It’s more of a fake. I highly doubt Renault will have anything to do with this project at all. They must be withdrawn or face sanctions. I don’t think that the French decided to cheat, hoping that no one will guess what platform they are making “Moskvich”, says the automotive expert, partner of the analytical agency “Avtostat” Igor Morjaretto.
Two other scenarios are far more realistic and desirable. That the Moscow government will attract Chinese or Korean automakers as a strategic investor, which, unlike Western ones, will not leave Russia after all. “I see the option of a Chinese car with the Moskvich brand as an opportunity,” says Morjaretto.
Three Chinese brands have achieved a significant presence in the Russian market. These are “Haval”, “Cherry” and “Gili”, which last year sold 25-40 thousand cars a year. But many Chinese companies have to settle for much more modest sales. These are “Changan”, “EXID”, “Lifan”, “Zotie” and others. Many of them have room to grow. In addition, there are hundreds of domestic car brands in China itself that can take advantage of the “window of opportunity”.
“I would like to reach an agreement with the Koreans, who are pursuing an aggressive policy of conquering the Russian market,” says Vladimir Mozhankov. According to him, the negotiations will be more effective if they are conducted with three or four brands at the same time. “You remember the experience of the Soviet Union, when we negotiated with the French and Italians, and then bought the Fiat platform,” Mozhankov believes. We are talking about the first Zhiguli, which left the assembly line in Togliatti in 1970. The VAZ-2101 was created on the basis of the Fiat-124.
“The main thing is not to call the new car “Moskvich” under any circumstances. Better to come up with a new brand. Our guys are creative and can come up with something more interesting,” the source said.
Experts have great doubts whether it is necessary to save the Moscow automobile plant in this way? “At one time, AvtoVAZ and GAZ enterprises were corporate and are still operating successfully. But at the factories of “Moskvich” and ZIL Luzhkov did not allow this. Enormous sums of money, which were given to support these inefficient monsters, were looted. Luzhkov behaved ineffectively in this matter,” says Mozhankov.
The plant will remain with all equipment and staff, but it won’t live long, according to Morjaretto. “The city took over the plant for completely understandable reasons: to keep people out of work. However, it is unprofitable to keep such a giant in the center of Moscow. This enterprise will always be unprofitable. Keeping ten hectares of “golden” land for industrial production in the center of Moscow, bringing workers here, since Muscovites worked here only in managerial positions, is very expensive. The plant could only exist due to the fact that the Moscow government gave it serious tax breaks, paid its bills and logistics,” says Morjaretto.
According to him, one way or another, but the plant will cease to exist in the center of Moscow and will leave the capital. And since this is inevitable, it is better to happen now, and not after several years of vain attempts to maintain industrial production in the center of the capital.
Translation: V. Sergeev
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