Problems for Renault: what is happening with Dacia

Renault Group CEO Luca de Meo warned that the suspension of activities in Russia creates a “very complex situation” for the company.

Luca de Meo mentioned that Renault will make employee safety a priority as it seeks solutions for its operations in Russia.

The Renault Group has announced that it is suspending operations at the Moscow plant, and is evaluating possible options for AvtoVAZ, a Russian company that produces Lada cars in which Renault is a majority shareholder.

Renault’s problems with the announcement of the suspension of operations in Russia are manifested in the background of the group’s attempt to implement the Renaulution recovery plan. It was only in its infancy that it had already led to the first net profit in two years.

Dacia is important for Renault

In addition, this plan provided for the grouping of the Dacia and Lada brands into a single profit center. Specifically, the Renaulution plan provided for a common business model, aiming at a “cool” look for the Romanian brand and a “tough” one for the Russian brand.

More importantly, the two brands should have reduced the number of technical platforms used from 4 to one, common, and the body types from 18 to just 11. Thus, instead of a production of 0.3 million units / platform will reach 1.1 million / platform.

The Dacia – Lada business unit planned to launch 7 new models by 2025, two of which in the compact segment, both brands bringing back “iconic models”. Dacia also had the task of lending its LPG technology to the Lada brand, while the Romanian brand received the hybrid E-Tech technology from Renault.

It should be borne in mind that the range of products in Russia is also based on models of the Romanian manufacturer and that a part – smaller and smaller, it is true – of the components of the machines assembled there are produced in Romania.