The French group Renault has placed a lot of hope and also a lot of money in the cooperation between its brands Dacia and Lada. The traditional Russian carmaker was to help each other kick again. But now it seems that Renault will leave AvtoVAZ and with it Lada to the Russian state only for a symbolic price.
AvtoVAZ is the largest Russian carmaker, while Lada is the best-selling brand. The French group Renault has invested hundreds of millions to revive the aging brand. Now this Russian investment seems to be on the move, and leaving France will hurt the French.
Renault is negotiating the sale of a majority stake in AvtoVAZ. He wants to sell it to the state automotive research institute NAMI and as he informed Wall Street Journalwill leave its 68% stake in Moscow for a single ruble.
The Russian press has already informed about the planned “buyout” agentura Interfax. Trade Minister Denis Manturov told her that the stake in AvtoVAZ would “most likely” go to a state-sponsored research institute.
Moscow denies that it is a nationalization, but according to Reuters, this is one of the first examples of how Moscow intends to “deal” with companies that have decided to suspend their activities in Russia after the Russian invasion of Ukraine.
Renault hesitated for a long time, but eventually withdrew from Russia:
Renault turned after Zelenský’s criticism. Production in Russia stopped again after a few days
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Apparently, Renault will definitely leave the giant Tolyatti factory, in the modernization of which it has invested heavily, as well as the factory near Moscow, which produced Renault and Nissan models for the local market.
Moscow is said to offer Renault Group a share repurchase option, describing its role as a “guardian” because the French can return to Russia in five or six years. According to Manturov, however, they would also have to pay for the investments that will take place in the meantime at the car factory.
Renault has not yet commented on these plans, and the French government, which has a 15 percent stake in the group, is also silent.
According to the agencies, a similar fate may soon affect other companies that have withdrawn from Russia and are now desperately looking for buyers for their assets there, either directly in Russia or abroad. However, those interested are not currently coming from either China or the Middle East.
Enyaq is coming off the lines again. Part of Škoda’s production has moved from Ukraine to the Czech Republic, including people
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“We do not plan to buy, let alone nationalize,” they quote Financial Times Russian Minister of Commerce. “But if the company is not able to supply components, we cannot wait forever. We will have to find an alternative – it will affect all car manufacturers who will continue to hesitate to decide,” said Manturov.
Volkswagen and Škoda, BMW, Mercedes, Stellantis and Ford, for example, have stopped their activities in Russia. It is not yet clear exactly how they intend to “break up” with Moscow.
In any case, Renault was the “hooked” most in Russia. Renault Group’s partner in AvtoVAZ is the Russian state conglomerate Rostec, which manufactures weapons and military equipment, among others, and which is controlled by Putin’s close ally Sergei Chemezov.
The local factories for Renault employ 40,000 people, and joining AvtoVAZ has borne fruit for the French group. Last year, the Russian market secured about 10% of its total turnover.
Dacia will connect with Lada! It showed the new logo and the future of cheap cars
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The group has already announced that leaving Russia could cost him 2.2 billion euros in accounting results for the first half of this year. In addition, the carmaker continues to pay Russian employees, although the operation is paralyzed due to lack of parts.
Renault Group CEO Luca de Meo had big plans for the Lada brand. He wanted to move the legendary but aging models to a modern platform produced by the Renault and Nissan alliance and increase synergies with the Romanian brand Dacia, which also belongs to the group, in the coming years. A major modernization of the iconic Lada Niva model was also underway.
The new Lada Niva looks interesting. Do you know where the Russians were inspired?
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Instead, AvtoVAZ can have big problems after Renault leaves. The Financial Times warns that Russia may have difficulty supplying semiconductors. And it is highly unlikely that Renault will provide its own technology and parts once it does not have a stake. AvtoVAZ would probably have to rework the cars and their production.
box, TN.cz
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