Lada production line Image: Newsroom Renault Group
Renault has sold their Lada stake in a latest sanction against the controversial Russian assault and occupation of Ukraine which has spanned almost four months.
Lada production line Image: Newsroom Renault Group
As early as the end of March, Renault announced that it would suspend activities in its Moscow Avtovaz Factory while reducing the €2,2 billion value to zero at the same time. This is a considerable blow to the Russian economy and automotive sector considering the Lada brand represents just under a quarter of the Russian market annually. This happened around the same time that Toyota and Volkswagen ceased activities in the far east European country and halted exports too.
This all came amidst accusations from Ukrainian President Volodymyr Zelensky against the French brand continuing to support the totalitarian country which at the time had occupied their neighbour for more than a month after their invasion. In a latest announcement, Renault sold their Lada stake with a statement from the Renault CEO Luca de Meo reading: “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,”
This still leaves Renault with the opportunity to return to the country in the future after the sale of Renault Russia went through to the City of Moscow, this includes a 68% stake in Lada parent Avtovaz. New car sales have plummeted in Russia, down 63% from the same time in 2021 following the mass exodus of foreign car makers. Unfortunately Lada, the Soviet-era icon for utilitarian mobility still relies heavily on imported parts although the company stated it would intend saving 40 000 jobs by restructuring operations and in-sourcing components for future models.
Keyword: Renault sells Lada stake while exiting Russian market