June 27, 2022

Dubai Week

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Russia acquires Renault car plant

Russia acquires Renault car plant

After a long time Western barriers Imposed on RussiaThe company has announced Cars In the first massive nationalization since Moscow’s invasion of Ukraine, Russia’s President Renault, who acquired the Lada brand, will sell its assets to the Russian government.

The group said in a statement that it had sold 67.69 per cent of its largest stake in the Russian automobile research and development arm, along with the Lada brand, to the Russian automaker Autovas Group. And engines.

At the end of April, Russian Trade Minister Denis Mandurov pointed out Agreement Ruble will meet Ramsay, Renault has not confirmed it.

Property transfer

“Agreements have been signed to transfer Russian assets from the Renault Group to the Russian Federation and the Government of Moscow,” the Russian ministry confirmed.

The French carmaker has abandoned the Renault brand’s operations in Russia to Moscow, including a Renault and Nissan manufacturing plant in the capital.

The mayor of the Russian capital, Sergei Sofianin, announced that the plant would relaunch 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 employees 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 manufactured.

New car product

And political analyst Anton Urich argued that in the absence of foreign technologies and components, trying to build a brand new car from scratch would be like “throwing billions out the window”.

Renault, which joined Autovas in 2008, became a majority partner in 2014, while Carlos Gossen led the team.

The car company then recovered the troubled Russian Federation from bankruptcy. It was contributed by the participation of the Russian military-industrial group Rostek.

After large investments and technology engagement with Renault’s economic brand Dacia, AutoVAZ began to make a profit. By 2021, Renault will have sold nearly half a million cars in Russia, the French group’s second largest market after Europe.

The French auto conglomerate, which is heavily involved in Russia, has kept the door open since it was able to buy shares in Autovas for six years.

“Today we have made a difficult but necessary decision,” said Luca de Mio, Chairman of the Renault Group.

Assembly lines

Autovas manufactures cars, most notably the giant factory “Southwest” in Toliatti, which employs 35,000 people. Dacia Logan and Sandero are also marketed under the Renault brand.

Most of the assembly lines of the factory were shut down after the Russian invasion of Ukraine on February 24. Due to the restrictions imposed, the factory can no longer procure essential components. Employees and workers were given three weeks’ paid leave in April, with most of its production halted.

The group’s union announced on May 12 that it would close production lines again between May 16-20. Without talking about the “nationalization” process, Vladimir Putin backed the appointment of “external” executives in March. Head of Foreign Companies. Seeks to leave Russia “to send it to those who want to work.”

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