renault: Renault suspends work at Moscow plant, to access stake in AvtoVAZ – Times of India
NEW DELHI: Hours after Ukrainian President Volodymyr Zelenskyy called on French companies, still working in Russia, to “stop sponsoring” the Kremlin’s aggression against his country, with his foreign minister calling for a boycott of Renault, the carmaker announced immediate suspension of work at its Moscow factory.
Renault on Wednesday said it would suspend operations at its plant in Moscow while it assesses options on its majority stake in AvtoVAZ, Russia’s number one carmaker, “taking into account the current environment”. It added it was acting responsibly towards its 45,000 employees in Russia.
Renault is the most exposed Western carmaker to Russia, where it generates 8% of its core earnings, according to Citibank, mainly through its 69% stake in AvtoVAZ, which is behind the Lada car brand.
The French automobile company, as a result, revised its operating group margin to around 3%.
The Renault Group also reminded that it had already implemented the necessary measures to comply with international sanctions against Russia.
Russia-Ukraine war live updates
It said the Renault Group will pursue its commercial policy focused on value, strengthen its competitiveness and accelerate its cost reduction programme.
Earlier in the day, Ukrainian President Zelenskyy, while virtually addressing the French parliament, called on the local companies to quit the Russian market.
His foreign minister had even called for a boycott of automaker Renault.
“French companies must quit the Russian market. Renault, Auchan, Leroy Merlin and others must stop sponsoring the Russian war machine,” he said during a 15-minute video address in his trademark green T-shirt.
(with inputs from agencies)
Renault on Wednesday said it would suspend operations at its plant in Moscow while it assesses options on its majority stake in AvtoVAZ, Russia’s number one carmaker, “taking into account the current environment”. It added it was acting responsibly towards its 45,000 employees in Russia.
Renault is the most exposed Western carmaker to Russia, where it generates 8% of its core earnings, according to Citibank, mainly through its 69% stake in AvtoVAZ, which is behind the Lada car brand.
The French automobile company, as a result, revised its operating group margin to around 3%.
The Renault Group also reminded that it had already implemented the necessary measures to comply with international sanctions against Russia.
Russia-Ukraine war live updates
It said the Renault Group will pursue its commercial policy focused on value, strengthen its competitiveness and accelerate its cost reduction programme.
Earlier in the day, Ukrainian President Zelenskyy, while virtually addressing the French parliament, called on the local companies to quit the Russian market.
His foreign minister had even called for a boycott of automaker Renault.
“French companies must quit the Russian market. Renault, Auchan, Leroy Merlin and others must stop sponsoring the Russian war machine,” he said during a 15-minute video address in his trademark green T-shirt.
(with inputs from agencies)
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