Photo: Renault
The Renault Group has decided to sell 100% of its shares in Renault Russia to the Russian government, together with its 67.69% interest in AvtoVAZ, which we already knew was going to NAMI (the Central Research and Development Automobile and Engine Institute).
This agreement also holds an option for the French carmaker to buy back its interest in AvtoVAZ, exercisable at certain times during the next six years.
“Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 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. I am confident in the Renault Group’s ability to further accelerate its transformation and exceed its mid-term targets,” stated the Group’s CEO, Luca de Meo.
Thanks to AvtoVAZ, Russia was the Renault Group’s second-largest market behind Europe, with around half a million vehicles sold, as reported by Le Monde.
Furthermore, the Group's Russian operations will “consequently be deconsolidated in Renault Group consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities in application of IFRS 5 requirements.”
Renault will also present its updated financial outlook and strategy at a Capital Market Day this fall, as it attempts to become a competitive tech and sustainable benchmark player.
Here’s the kicker though, as far as this story is concerned. It’s been reported that Sergei Sobyanin, the Mayor of Moscow is looking to also restart production of passenger cars under the Soviet-era Moskvich brand in order to keep people working at that plant.
“This is its right,” said Sobyanin while referring to Renault shutting down its factory in Moscow. “But we cannot allow thousands of workers to be left without work. We will try to keep most of the team directly working at the plant and with its subcontractors.”
“Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 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. I am confident in the Renault Group’s ability to further accelerate its transformation and exceed its mid-term targets,” stated the Group’s CEO, Luca de Meo.
Thanks to AvtoVAZ, Russia was the Renault Group’s second-largest market behind Europe, with around half a million vehicles sold, as reported by Le Monde.
Furthermore, the Group's Russian operations will “consequently be deconsolidated in Renault Group consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities in application of IFRS 5 requirements.”
Renault will also present its updated financial outlook and strategy at a Capital Market Day this fall, as it attempts to become a competitive tech and sustainable benchmark player.
Here’s the kicker though, as far as this story is concerned. It’s been reported that Sergei Sobyanin, the Mayor of Moscow is looking to also restart production of passenger cars under the Soviet-era Moskvich brand in order to keep people working at that plant.
“This is its right,” said Sobyanin while referring to Renault shutting down its factory in Moscow. “But we cannot allow thousands of workers to be left without work. We will try to keep most of the team directly working at the plant and with its subcontractors.”
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