Circus with horses: why did Russian car dealers sue Renault
- November 28, 2023
- 0
Renault, as we well remember, ceased operations in Russia in May 2022. Exactly a year and a half have passed since then and now some former dealers of
Renault, as we well remember, ceased operations in Russia in May 2022. Exactly a year and a half have passed since then and now some former dealers of the French brand have filed a lawsuit against it. The portal “AvtoVzglyad” reflects on the winding paths along which our separation from former European partners is taking place.
Renault left the Russian market hastily, without warning or preparation for a retreat. As the Russian Automobile Dealers Association (ROAD) authoritatively states, the decision of the French headquarters came as a complete surprise even to our car dealers.
But after thirty years of work in Russia, Renault acquired a powerful car sales network, which included 150 official representatives of the brand. All one and a half hundred organizations that tied their fate to this brand were simply left with all their long-term contracts, a lot of staff and expensive equipment designed exclusively for the maintenance of “Renault cars”.
Myths debunked
Thus, another myth collapsed from that brilliant set with which the Liberoids successfully processed the brain of the average person. The first was that the hand of the market, with supernatural wisdom, regulates everything and everyone. It turned out that it doesn’t regulate anything at all, because the world is ruled by transnational corporations, which are essentially monopolists in their field.
The second myth was the belief that business controls politicians. None of that: the bacchanals against Russia were unleashed solely by politicians who openly showed no concern for the needs of the business community, which suffered greatly from such neglect.
Well, the third myth, which has now collapsed, is that companies care about their reputation and support it in every possible way, and strive to build long-term relationships with dealers and customers, based on complete trust and responsibility. Renault’s hasty flight from Russia should have severely damaged the image of the company, which shamefully violated the ethics of business relations – and it’s all God’s dew. By the way, this moment was perfectly understood by the Chinese, who are not at all concerned about the painstaking construction of the history of their precocious brands,
It seems that our country’s answer simply presented itself: throw the villains out like bent dogs and forever deprive them of the right to return. This would be a powerful move that would help prevent similar moves from other automakers. After all, everyone understands very well that sooner or later the confrontation will end and the time will come to restore broken contacts.
Exercises for the spine
However, our economic and financial elites, as always, behaved in an extremely servile manner towards the ‘white masters’. “The first duty of a courtier is to exercise the spine every day so that it acquires the necessary flexibility.”
Renault was allowed to obtain an option to buy back its stake in AVTOVAZ within six years. Against this background, timid attempts by dealers to peacefully negotiate voluntary compensation initially seemed ridiculous. Unsurprisingly, Renault management initially delayed the negotiation process and stopped communicating altogether in July last year.
As a result, major Russian retailers RTDS and BN-Motors, desperate to achieve something amicably, filed lawsuits in the arbitration courts of Moscow and the Kaluga region against the French Renault group. Vedomosti reported, citing ROAD, that we are talking about compensation of 760 million rubles. Another ten former dealers are ready to defend their interests in court.
I think you’re funny
This act in itself does not seem convincing. And the amount is quite ridiculous; it obviously does not compensate for the losses for traders, not to mention the lost profits. And the French will of course not pay any damages if the decision is positive for the claimants. They will spit scornfully on the rulings of Russian courts from their Boulogne-Billancourt. So what is this circus with horses for?
The only point of this whole entertaining move could be to retroactively deprive Renault of the ill-fated option, since hopes for their loyal attitude towards Russian consumers among the majority of the population have long evaporated. However, we obviously cannot catch the mood floating on the sidelines of the Ministry of Industry and Trade. But even in this case, instead of a stern warning march, we will get something vague, akin to revenge after the fact.
As they say, an egg is precious for Christ’s Day.
Photo from the portal “AvtoVzglyad”.
Photo globallookpress.com
Renault left the Russian market hastily, without warning or preparation for a retreat. As the Russian Automobile Dealers Association (ROAD) authoritatively states, the decision of the French headquarters came as a complete surprise even to our car dealers.
But after thirty years of work in Russia, Renault acquired a powerful car sales network, which included 150 official representatives of the brand. All one and a half hundred organizations that tied their fate to this brand were simply left with all their long-term contracts, a lot of staff and expensive equipment designed exclusively for the maintenance of “Renault cars”.
Myths debunked
Thus, another myth collapsed from that brilliant set with which the Liberoids successfully processed the brain of the average person. The first was that the hand of the market, with supernatural wisdom, regulates everything and everyone. It turned out that it doesn’t regulate anything at all, because the world is ruled by transnational corporations, which are essentially monopolists in their field.
The second myth was the belief that business controls politicians. None of that: the bacchanals against Russia were unleashed solely by politicians who openly showed no concern for the needs of the business community, which suffered greatly from such neglect.
Well, the third myth, which has now collapsed, is that companies care about their reputation and support it in every possible way, and strive to build long-term relationships with dealers and customers, based on complete trust and responsibility. Renault’s hasty flight from Russia should have severely damaged the image of the company, which shamefully violated the ethics of business relations – and it’s all God’s dew. By the way, this moment was perfectly understood by the Chinese, who are not at all concerned about the painstaking construction of the history of their precocious brands,
It seems that our country’s answer simply presented itself: throw the villains out like bent dogs and forever deprive them of the right to return. This would be a powerful move that would help prevent similar moves from other automakers. After all, everyone understands very well that sooner or later the confrontation will end and the time will come to restore broken contacts.
Exercises for the spine
However, our economic and financial elites, as always, behaved in an extremely servile manner towards the ‘white masters’. “The first duty of a courtier is to exercise the spine every day so that it acquires the necessary flexibility.”
Renault was allowed to obtain an option to buy back its stake in AVTOVAZ within six years. Against this background, timid attempts by dealers to peacefully negotiate voluntary compensation initially seemed ridiculous. Unsurprisingly, Renault management initially delayed the negotiation process and stopped communicating altogether in July last year.
As a result, major Russian retailers RTDS and BN-Motors, desperate to achieve something amicably, filed lawsuits in the arbitration courts of Moscow and the Kaluga region against the French Renault group. Vedomosti reported, citing ROAD, that we are talking about compensation of 760 million rubles. Another ten former dealers are ready to defend their interests in court.
I think you’re funny
This act in itself does not seem convincing. And the amount is quite ridiculous; it obviously does not compensate for the losses for traders, not to mention the lost profits. And the French will of course not pay any damages if the decision is positive for the claimants. They will spit scornfully on the rulings of Russian courts from their Boulogne-Billancourt. So what is this circus with horses for?
The only point of this whole entertaining move could be to retroactively deprive Renault of the ill-fated option, since hopes for their loyal attitude towards Russian consumers among the majority of the population have long evaporated. However, we obviously cannot catch the mood floating on the sidelines of the Ministry of Industry and Trade. But even in this case, instead of a stern warning march, we will get something vague, akin to revenge after the fact.
As they say, an egg is precious for Christ’s Day.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
