following being long Western sanctions imposed on Russiathe company announced the cars France’s Renault, the leader in Russia, which acquired the Lada brand, will sell its assets to the Russian state, in the first massive nationalization since Moscow’s attack on Ukraine.
The group said in a statement that it had sold its largest stake, 67.69 percent, in the “AutoVAZ” group, the main in the Russian auto industry, along with the “Lada” brand, to the Russian Institute for Research and Development of Automobiles and Engines.
At the end of April, Russian Trade Minister Denis Manturov indicated that Deal Ruble Ramsey will be met, while Renault has not confirmed it.
asset transfer
The Russian Ministry confirmed that “agreements have been signed to transfer Russian assets from the Renault Group to the Russian Federation and the Moscow government.”
The French car company also relinquished the Renault brand’s own operations in Russia to Moscow, including its factory in the capital that produces Renault and Nissan.
And the mayor of the Russian capital, Sergei Sobyanin, announced that the plant will re-launch the Soviet brand “Moskovich”, which began production of its cars in 1946 and was known for its simplicity.
“We cannot accept that thousands of workers will lose their jobs,” he said in a statement, stressing that “most of the factory’s workforce and its collaborators will be retained.” The Russian truck plant “KAMAZ” will be the main partner of the electric car plant, where electric cars are to be produced.
New car production
And political analyst Anton Urich considered that trying to produce a new car, starting from scratch, in the absence of foreign technologies and components, is like throwing “billions out of the window.”
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Renault joined AutoVaz in 2008 to become the majority shareholder in 2014 while Carlos Ghosn led the group.
Then the auto giant bailed out the troubled Russian conglomerate from bankruptcy. This was contributed by the participation of the Russian military-industrial group Rostec.
After huge investments and technical involvement with Dacia, Renault’s economic brand, AutoVAZ started making profits. In 2021, Renault sold nearly half a million cars in Russia, the French group’s second largest market following Europe.
The French auto group, which is most involved in Russia and the last to leave, has kept the door open, as it will be able to buy shares in AutoVAZ for six years.
“Today we made a difficult but necessary decision,” said Luca de Meo, president of the Renault group, stressing his keenness to act “responsibly towards its 45,000 employees in Russia, while preserving the group’s performance and our ability to return to the country in the future, in a different context. “.
assembly lines
AutoVAZ manufactures cars, especially in its giant factory in Tolyatti, “southwest”, which employs 35,000 people. Dacia Logan and Sandero are also marketed under the Renault brand.
Most of the factory’s assembly lines were halted following the Russian attack on Ukraine on February 24. Due to the imposed sanctions, the factory can no longer receive essential components. Staff and workers were given three weeks of paid leave in April, shutting down most of its production.
The group’s trade union announced once more on May 12 the closure of production lines between May 16-20 due to a lack of components. Without talking regarding the process of “nationalization”, Vladimir Putin in March supported the appointment of “external” administrators at the head of foreign companies. Seeking to leave Russia “to pass it on to those who want to make it work.”