Controversial decision from Renault: what the French decided, where they resume production

Despite Russia’s invasion of Ukraine, Renault will keep its plant in Moscow open.

Renault has resumed production at the Moscow plant, a company spokesman said.

The French carmaker suspended operations at the plant in late February, saying it was due to a “forced change of existing logistics routes”.

The Moscow plant produces Renault Duster, Kaptur and Arkana and Nissan Terrano models.

Renault did not say how long the plant will continue to operate.

“The situation with the supply of components is unstable and changing, we prefer not to make any predictions,” said a spokesman for Renault Moscow.

Renault’s board of directors has decided to keep its presence in Russia intact for the time being, respecting international sanctions and with the support of its main shareholder, the French state.

Renault-owned Avtovaz announces outages

Leading Russian carmaker Avtovaz has said it has partially shut down production at its factories in Togliatti and Izhevsk on March 21-25 due to a shortage of electronic parts.

Avtovaz, which is controlled by French carmaker Renault, has periodically shut down production this month due to these shortfalls.

However, Renault produces two models – Logan and Sandero – for the Russian market in Izhevsk, along with LADA models. Avtovaz said that the LADA Izhevsk plant will continue to produce the Vesta model and vehicles on Renault’s B0 platform between March 21-22.

Avtovaz added that work on all assembly lines will be stopped on March 23-25, but that some production functions will continue operations during this period.

The French carmaker has suspended some operations at its own car assembly plant in Russia.

Renault, which returned to profit in 2021 after two years of losses, is among the most exposed Western companies in Russia, where it makes 8% of its core profits, according to Citibank.