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The mass exodus of world car brands from Russia was not formally a flight – almost all manufacturers somehow tried to keep up with appearances, without officially announcing
According to the eight-month results of 2022, the Russian car market has collapsed by 60.7% compared to the same period last year. During all this time, a little more than 400 thousand cars were sold. For a nation of 140 million, this number is so small it is shocking.
However, it was difficult to expect a different result – in the spring almost all factories of foreign brands stopped working, global automakers stopped official delivery of their products. It is worth adding that normal operation of the industry is unlikely to be restored, at least in part, in the near future. Currently, dealers are saving themselves from immediate bankruptcy by selling the cars in the warehouses at clearly inflated prices. At the same time, most brands are still trying to save face and do not announce their withdrawal from the Russian market, preferring to talk about the cessation of production due to logistical problems.
However, there are exceptions among them. The American General Motors defiantly left Russia, which is not surprising at all – firstly, this is an American company, and secondly, their sales here were small. Renault was the second western brand to take such a drastic step. But this is just very surprising.
The French explored our market more actively than others – they owned the Moscow factory “Avtoframos”, as well as 67.7% of the shares of the domestic industry giant AVTOVAZ. No car company has ‘hidden’ this deep in Russia. Yet it was from this side that we unexpectedly received a painful kick. Of course it was necessary to think before sitting down at the table. Even more than 700 years ago, the Roman couple Boniface VIII assured: “You have to be very careful when dealing with the French. Because whoever associates with the French has to do with the devil.”
Admittedly, this time the devil has ruined himself. Renault lost a market 1.7 times larger than its home market in France. If 268,951 cars were sold there in 2021, then here, taking into account AVTOVAZ products, 482,266, and excluding 131,552 cars. As a result of the group’s exit from our market, worldwide sales decreased by 30%, according to Reuters.
But these are generally Renault’s problems – who fought for what. For example, other representatives of major French companies are exactly on the fifth point and are running nowhere, completely coping with pressure from politicians – companies like Auchan, Danone, Leroy Merlin and Decathlon have not stopped their activities in Russia. The head of the Union of French Entrepreneurs, Geoffroy Roux de Beziers, told BFMTV: “Our responsibility as an employer is to support our employees and Russian citizens.”
The management of Renault decided otherwise. It transferred the Moscow plant to the Moscow government and a share in AVTOVAZ to the NAMI company in the so-called deal for the ruble. Thus, the company retained the opportunity to return to the Russian market within six years, compensating for the investment costs of the new “temporary” owners.
The French also promised to continue to supply large body parts, engines and gearboxes for service work, as indicated by Alexei Podshchekoldin, Chairman of the Board of Directors of BN-Motors. Don’t let it go directly, but through third countries, but that’s what they promised. The head of the Ministry of Industry and Trade of the Russian Federation, Denis Manturov, added that Renault would facilitate the delivery of its components for AVTOVAZ and that the plant would continue to produce cars itself on a platform developed together with the French. . “The main condition is that Renault will make every effort to facilitate the supply of components from other countries – friendly and ready for the production and delivery of these products, retaining the possibility to use the platform developed by Renault together with AvtoVAZ engineers,” he said. TASS words by Manturov.
Of course, no motorcycles and car kits are delivered to Russia. Accordingly, all hopes for the release of the popular Duster crossover, which was still hot in the summer, can be safely buried. And with the release of the lineup of the Lada itself, which is critically dependent on the stocks of the French “partner”, everything goes wrong. In an interview with RBC, AvtoVAZ president Maxim Sokolov spoke very candidly: “About 1,500 parts out of an average of 4,500,000 parts that make up a car have not yet been replaced by imports. Almost every day we get some kind of signal or phone call to stop supplying a certain part.”
Sooner or later, economic cooperation with the West will be restored. And then the question will arise – how to consider the behavior of Renault officials in general and the fulfillment of the promises given to them in particular. There is a faint hope that by then there will be no people in the Russian leadership who will look with admiration at the European “white master” and forgive him for all the mischief committed.
According to the eight-month results of 2022, the Russian car market has collapsed by 60.7% compared to the same period last year. During all this time, a little more than 400 thousand cars were sold. For a nation of 140 million, this number is so small it is shocking.
However, it was difficult to expect a different result – in the spring almost all factories of foreign brands stopped working, global automakers stopped official delivery of their products. It is worth adding that normal operation of the industry is unlikely to be restored, at least in part, in the near future. Currently, dealers are saving themselves from immediate bankruptcy by selling the cars in the warehouses at clearly inflated prices. At the same time, most brands are still trying to save face and do not announce their withdrawal from the Russian market, preferring to talk about the cessation of production due to logistical problems.
However, there are exceptions among them. The American General Motors defiantly left Russia, which is not surprising at all – firstly, this is an American company, and secondly, their sales here were small. Renault was the second western brand to take such a drastic step. But this is just very surprising.
The French explored our market more actively than others – they owned the Moscow factory “Avtoframos”, as well as 67.7% of the shares of the domestic industry giant AVTOVAZ. No car company has ‘hidden’ this deep in Russia. Yet it was from this side that we unexpectedly received a painful kick. Of course it was necessary to think before sitting down at the table. Even more than 700 years ago, the Roman couple Boniface VIII assured: “You have to be very careful when dealing with the French. Because whoever associates with the French has to do with the devil.”
Admittedly, this time the devil has ruined himself. Renault lost a market 1.7 times larger than its home market in France. If 268,951 cars were sold there in 2021, then here, taking into account AVTOVAZ products, 482,266, and excluding 131,552 cars. As a result of the group’s exit from our market, worldwide sales decreased by 30%, according to Reuters.
But these are generally Renault’s problems – who fought for what. For example, other representatives of major French companies are exactly on the fifth point and are running nowhere, completely coping with pressure from politicians – companies like Auchan, Danone, Leroy Merlin and Decathlon have not stopped their activities in Russia. The head of the Union of French Entrepreneurs, Geoffroy Roux de Beziers, told BFMTV: “Our responsibility as an employer is to support our employees and Russian citizens.”
The management of Renault decided otherwise. It transferred the Moscow plant to the Moscow government and a share in AVTOVAZ to the NAMI company in the so-called deal for the ruble. Thus, the company retained the opportunity to return to the Russian market within six years, compensating for the investment costs of the new “temporary” owners.
The French also promised to continue to supply large body parts, engines and gearboxes for service work, as indicated by Alexei Podshchekoldin, Chairman of the Board of Directors of BN-Motors. Don’t let it go directly, but through third countries, but that’s what they promised. The head of the Ministry of Industry and Trade of the Russian Federation, Denis Manturov, added that Renault would facilitate the delivery of its components for AVTOVAZ and that the plant would continue to produce cars itself on a platform developed together with the French. . “The main condition is that Renault will make every effort to facilitate the supply of components from other countries – friendly and ready for the production and delivery of these products, retaining the possibility to use the platform developed by Renault together with AvtoVAZ engineers,” he said. TASS words by Manturov.
Of course, no motorcycles and car kits are delivered to Russia. Accordingly, all hopes for the release of the popular Duster crossover, which was still hot in the summer, can be safely buried. And with the release of the lineup of the Lada itself, which is critically dependent on the stocks of the French “partner”, everything goes wrong. In an interview with RBC, AvtoVAZ president Maxim Sokolov spoke very candidly: “About 1,500 parts out of an average of 4,500,000 parts that make up a car have not yet been replaced by imports. Almost every day we get some kind of signal or phone call to stop supplying a certain part.”
Sooner or later, economic cooperation with the West will be restored. And then the question will arise – how to consider the behavior of Renault officials in general and the fulfillment of the promises given to them in particular. There is a faint hope that by then there will be no people in the Russian leadership who will look with admiration at the European “white master” and forgive him for all the mischief committed.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
