Renault is finally withdrawing from Russia and has sold its shares in the Renault factories. Moscow Mayor Sergei Sobyanin announced that he would revive the USSR brand Moskvich.
As a result of western sanctions, many companies have withdrawn from Russia. So does the car manufacturer Renault. The factories are at a standstill and production cannot continue without the support of the parent company.
Now it is becoming clear for the first time how the Kremlin will deal with the problem: a Renault factory has been transferred to state ownership and is apparently to be continued under state direction. Renault has described the sale of its shares to the city of Moscow as a “necessary decision”. “We made a difficult but necessary decision today and are making a responsible choice towards our 45,000 employees in Russia,” said CEO Luca de Meo. In 2005, Renault started car production in Russia as part of a joint venture with the city of Moscow. The sale ends an era for Renault.
“I have decided to classify the factory as city property and resume production under the historic Moskvich brand,” Moscow Mayor Sergei Sobyanin said. “We will turn a new page in the history of Moskvich in 2022.” “Most” of the Renault plant’s employees and suppliers will continue to be employed. Today, Moskvich is just a traditional name and not a real company. In 2001 the production of vehicles ended, in 2006 the company was liquidated. Their vehicles shaped the streets of the USSR for 75 years.
Little more than a name
The plan was immediately joked about online, referring to the brand’s outdated models. It’s a joke, but it’s meaningless, because von Moskvich will mean little more than the traditional name and an emblem for the new company. A state takeover of the abandoned production facilities was to be expected, the next move should be exciting. Moscow’s mayor is unlikely to be able to develop his own reasonably modern cars. Due to possible legal problems, the Renault models can no longer be produced.
What kind of cars are built
The factories of Western brands assemble the vehicles in Russia, the necessary parts are only partly produced in Russia. Essential components are – or were – imported from the West. In principle, the dilemma could be solved with a new partner company from China. The next Moskvitch would actually be a Peking Car.
Source: Stern
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
