Yesterday there was news that Renault has decided to sell its Russian activities and stake in Lada for a large sum of 1 ruble (or twice, depending on the source). For those who play at home, at the time of writing, one unit of Russian currency in America currently costs 1.5 cents.
After this message, journalists in The Moscow Times said the country quickly nationalized a major plant owned by Renault, making it one of (if not) the first major transfers of private assets to state control since the invasion of Ukraine.
What does Russia plan to do with the facility? Of course, the kickstart produced by “Moskvich”.
“I have decided to include the factory in the city’s assets and resume production under the historic Moskvich brand,” said Moscow Mayor Sergei Sabyanin. statement. “In 2022, we will open a new page in the history of Moskvich,” he said. The KAMAZ heavy equipment brand is designed to become the plant’s main technological partner, which will apparently produce “classic cars” with internal combustion engines before allegedly switching to fully electric in the future.
Your author strongly doubts that the term “classic cars” means that we will suddenly see Cold War-era Moskvich sedans jump out of the factory, machines whose tools are certainly long worn out and recycled into washing machines. Rather, it is certainly a reference to what other parts of the world call “heritage cars” – those that burn gasoline or diesel, rather than buzzing along with a belly full of electrons. However, in this wildly unpredictable geopolitical climate anything can happen.
The plant is said to have produced models such as the Logan and Duster, as well as the Sandero, a model that became popular in the ironic lens thanks to James May and his good news. As it stands, Mr. Mayor said they will try to keep the “majority” of the existing team directly at the plant or with its suppliers. Renault has been at this door since the late 90s.
As for the exit, it seems that Renault simply ceded two-thirds of AvtoVAZ’s share with the right of redemption within six years. Elsewhere, fast food giant McDonald’s has announced it is packing up the store and selling its 850 Russian seats to a local buyer, who has promised that all restaurants will reopen in June under a new brand with a similar menu. This is probably the first and last time TTAC has reported on the details of fast food.
Renault’s exit is expected to result in 2.2 billion euros (2.32 billion US dollars).
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