Renault sells Avtovaz and Avtoframos to Russia
- After closing its Avtoframos plant in Moscow (100,000 vehicles per year) and wondering about the fate of its subsidiary Autovaz (400,000 vehicles per year) in which it holds almost 70% of the capital (the remainder being owned of the Russian arms company Rostec), the Renault group has decided to sell these two companies, the first to the city of Moscow, the second to a scientific institute specializing in the automobile which belongs to the Russian State, the NAMI. The Russian Ministry of Industry and Trade and Renault have both confirmed this information. Remember that Avtovaz manufactures the Lada in Togliatti and Izhevsk, the Renault Logan and Sandero in Togliatti, while Avtoframos manufactures the Renault Duster, Kaptur and Arkana in Moscow.
- Russia represents Renault's second market after France and almost half of its profits, which means that this country is a very important element of the manufacturer's industrial and commercial strategy. Renault employs 41,000 people in Russia, not counting the tens of thousands of other employees who depend directly on Renault's activities.
- This is why this sale is accompanied by a clause allowing Renault to be able to buy back its shares in Avtovaz within six years. But this takeover seems very hypothetical given the various recommendations put forward by the Russian government concerning manufacturers who have decided to leave Russia. Renault had bought Avtovaz in 2013 but this company had suffered losses until 2019. Since 2019, Avtovaz had become profitable thanks to the investments made by Renault to modernize its industrial tool.
Contact us: info@inovev.com