Dozens of car brands have already left the Russian market. They have curtailed sales and production, which has already led to a shortage of cars and rising prices. However, one company is still hesitant – we are talking about Renault.
For Renault Group, the market of the aggressor country is very important, as the French own a controlling stake in AvtoVAZ – they acquired it in 2007 for a billion dollars. In fact, the aggressor country accounts for 18% of the group’s sales, which amounts to $5.5 billion. for 2021.
It should be noted that Renault’s Moscow plant (the same one that makes the Arkana crossover) is no longer operating, and the VAZ conveyors have been stopped. A representative of the French government stated that Renault Group is ready to comply with sanctions.
Meanwhile, the management of the group prefers to remain silent. But while they are indecisive, Renault Group has already lost 30% of its market value. Just on Friday, Renault Group shares plummeted by 7.5%.
In this situation, experts advise the French group to reel in the lines quickly – this would be the right decision not only from a moral point of view but also economically.