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Muddy plan: to whom and why Renault’s share in AVTOVAZ . will give

  • April 27, 2022
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In the night from Tuesday to Wednesday (from April 26 to April 27), the news feeds of information agencies suddenly exploded with messages revealing the future fate of

Muddy plan: to whom and why Renault’s share in AVTOVAZ .  will give
In the night from Tuesday to Wednesday (from April 26 to April 27), the news feeds of information agencies suddenly exploded with messages revealing the future fate of their native AVTOVAZ. It is not very clear why the head of the Ministry of Industry and Trade Denis Manturov was led to “nightly disclosures”, but it was the minister who was the first to say that France’s Renault plans to withdraw from the share capital of the Russian car giant. And this is the only clear thought, while the other statements of the official turned out to be quite confused.

So what do we know for sure. At the Renault headquarters, they are now preparing to transfer AVTOVAZ shares (let’s fix this) to a new owner. The recipient of the package will most likely be NAMI State Scientific Center. It is expected that this will be a “deal for the ruble” and that the French can return the transferred share to themselves if they wish. They have 5-6 years to do this.

At the same time, Mr. Manturov emphasized that the state has no intention of buying out or nationalizing the car factories in Togliatti and Izhevsk. That is, we are talking about an absolutely fictitious deal, so that the Renault group could report to the EU authorities on the successful exit from the Russian company. Suppose the conditions are met, the sanctions are in effect.

In the end everyone is happy. The French retain a valuable asset and the Russian authorities do not have to worry about the stability of the car industry. Cars will be produced, factory workers will work, taxes will be withheld.

There is only one thing strange. When the news agenda is filled with the words “sanctions” and “counter-sanctions”, and senior government officials talk seriously about the nationalization of the properties of companies that have left Russia, the Ministry of Industry and Trade suddenly graciously agrees to “own” the shares of a company from an unfriendly country, and decides on an absolutely fictitious deal!

Or are sanctions sanctions and stability is more expensive? But what kind of stability is also a question. Suppose the French decide to return in those same 5-6 years. Or rather, as soon as the Russian-Ukrainian conflict comes out of the acute phase. But it is completely unclear what AVTOVAZ will be doing all this time. After all, even the purchase of parts was done centrally, via the Renault group.

Or here is another mystery. In Togliatti there is an entire assembly line B0, where not only French (or rather Romanian) models are produced, but also our Ladas – Largus and XRAY. A good note, the Russian side now has to buy a license for foreign architecture. Or not?

And it is completely incomprehensible how to work now on the successor to “Grants” and the future “Niva”. Both cars are based on the CMF-B platform, that is, they are variants of Logan and Sandero respectively. This means that in order to continue the creation of these new products, the Russian side must get the green light from the former owner of the shares.

Despite the seemingly elaborate comments from the head of the Ministry of Industry and Trade, in the language of street vendors, this whole deal seems downright “muddy”. And in this turbidity, everyone wants to take their own profits … Whoever is left without a catch are ordinary Russians. After all, it’s pretty clear that neither Granta-2 nor Niva-3 are coming out on time right now.

But it is much more important that after the divorce proceedings, the “stormy nineties” do not return to the factory, when the parts were delivered to the conveyor, not by the one who offers the best quality and lowest price, but by the one who “rolls back ” Lake. Now, without French oversight, the established system of “kickbacks” and “austerity” can easily get back to work. And then the LADA car will be what it was before the arrival of Renault – “buckets with bolts”. Although extremely popular with our brother…

photo of the manufacturer.
photo of the manufacturer.

So what do we know for sure. At the Renault headquarters, they are now preparing to transfer AVTOVAZ shares (let’s fix this) to a new owner. The recipient of the package will most likely be NAMI State Scientific Center. It is expected that this will be a “deal for the ruble” and that the French can return the transferred share to themselves if they wish. They have 5-6 years to do this.

At the same time, Mr. Manturov emphasized that the state has no intention of buying out or nationalizing the car factories in Togliatti and Izhevsk. That is, we are talking about an absolutely fictitious deal, so that the Renault group could report to the EU authorities on the successful exit from the Russian company. Suppose the conditions are met, the sanctions are in effect.

In the end everyone is happy. The French retain a valuable asset and the Russian authorities do not have to worry about the stability of the car industry. Cars will be produced, factory workers will work, taxes will be withheld.

There is only one thing strange. When the news agenda is filled with the words “sanctions” and “counter-sanctions”, and senior government officials talk seriously about the nationalization of the properties of companies that have left Russia, the Ministry of Industry and Trade suddenly graciously agrees to “own” the shares of a company from an unfriendly country, and decides on an absolutely fictitious deal!

Or are sanctions sanctions and stability is more expensive? But what kind of stability is also a question. Suppose the French decide to return in those same 5-6 years. Or rather, as soon as the Russian-Ukrainian conflict comes out of the acute phase. But it is completely unclear what AVTOVAZ will be doing all this time. After all, even the purchase of parts was done centrally, via the Renault group.

Or here is another mystery. In Togliatti there is an entire assembly line B0, where not only French (or rather Romanian) models are produced, but also our Ladas – Largus and XRAY. A good note, the Russian side now has to buy a license for foreign architecture. Or not?

And it is completely incomprehensible how to work now on the successor to “Grants” and the future “Niva”. Both cars are based on the CMF-B platform, that is, they are variants of Logan and Sandero respectively. This means that in order to continue the creation of these new products, the Russian side must get the green light from the former owner of the shares.

Despite the seemingly elaborate comments from the head of the Ministry of Industry and Trade, in the language of street vendors, this whole deal seems downright “muddy”. And in this turbidity, everyone wants to take their own profits … Whoever is left without a catch are ordinary Russians. After all, it’s pretty clear that neither Granta-2 nor Niva-3 are coming out on time right now.

But it is much more important that after the divorce proceedings, the “stormy nineties” do not return to the factory, when the parts were delivered to the conveyor, not by the one who offers the best quality and lowest price, but by the one who “rolls back ” Lake. Now, without French oversight, the established system of “kickbacks” and “austerity” can easily get back to work. And then the LADA car will be what it was before the arrival of Renault – “buckets with bolts”. Although extremely popular with our brother…

Source: Avto Vzglyad

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