Renault Resumes Production At Moscow Plant, Following Threats By Russia To Take Over Foreign Companies

Renault resumes production at Moscow plant, following threats by Russia to take over fleeing foreign companies.

Its Russian unit had in a statement last month said cited “some interruptions in supplies of components” for the decision.

Unnamed sources said Renault, Russia’s largest foreign automaker, did not want to exit the market for fear of losing its production sites.

Renault has three car assembly plants in Russia, employs 40,000 people, and controls 30% of Russia’s automotive market.

French carmaker Renault has resumed production at its Moscow plant on Monday, weeks after suspending operations, saying at the time it was due to logistics bottlenecks that have caused component shortages.

The French carmaker’s Russian unit, had in a statement last month said its Moscow production would stop from Feb 28-March 5 amid “some interruptions in supplies of components.”

“Interruptions are primarily caused by tighter border controls in transit countries and the forced need to change a number of established logistics routes,” the unit said, without naming any countries.

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Renault move to restart operations follows threats made by the Russian government that it would nationalize the production plants of foreign companies that pulled out of the market during its invasion of Ukraine.

While most automakers, including Mercedes-Benz and Ferrari, have paused operations in Russia for its invasion of Ukraine, unnamed sources said Renault, Russia’s largest foreign automaker, did not want to exit the market for fear of losing its production sites.

The French automaker also owns a controlling 67.61 percent share in Lada Auto Holding, which in turn owns AVTOVAZ, Russia’s biggest car manufacturer, which makes the Lada range.

In all, Renault has three car assembly plants in Russia, employs around 40,000 people, and controls about 30 percent of Russia’s automotive market.

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