Renault confirms the sale of AvtoVAZ
The Renault Group sold its stake in AvtoVAZ and Renault Russia operations, following Vladimir Putin’s invasion of Ukraine.
Their 67.69% stake in AvtoVAZ (Lada’s parent company) was sold to Russia’s Central Engine and Research and Development Institute (NAMI), and the Renault Group’s stake in Renault Russia was sold for the Moscow City company.
The agreement includes a provision allowing the Group to acquire Russia at some point over the next six years.
“The closing of these transactions is not subject to any conditions and all required approvals have been made,” the Renault Group said in a statement.
“Today, we made a difficult but necessary decision; and we are making a responsible choice for our 45,000 employees in Russia, while maintaining the Group’s performance and future ability to return home, in a different context, “Luca de Meo, Group CEO of Renault, said in a statement.
“I am confident in the ability of the Renault Group to further accelerate the transition and exceed the medium-term goals,” he said.
Renault announced that “a non-cash adjustment fee for the accounting value of the Group’s consolidated intangible assets, property, plant and equipment and goodwill in Russia” will be recognised. to the financial results for the first half of 2022.
While some automakers, including Volkswagen, Toyota and Ford, quickly shut down and stopped producing most of their work in Russia after the country invaded Ukraine in February, Renault showed Be more cautious in your approach.
It even restarted production at the end of March, just to backtrack a day later.
At the time, Lada said it was trying to replace “several key imported components with alternative solutions,” and was working on special versions of the vehicle “with reduced exposure to components.” import section”.
Last year, the company sold 385,000 Lada vehicles globally, accounting for 14.3% of the total production of the Renault Group.
It is not clear how the divestment in Lada will affect the automaker Renaulation Planthis called for Dacia to move upmarket a bit and Lada took on the drop at the end of the market.