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The Soviet-era Moskvitch brand is set to be revived, following Renault’s decision to offload its Russian operations.
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Russia is set to nationalise and take control of a factory belonging to French carmaker Renault, and will revive the popular Soviet-era Moskvitch car brand.
The move, being reported by the independent Moscow Times, is the first major nationalisation of a formerly foreign-owned entity since the outbreak of the war in Ukraine. The move follows earlier threats by the government to nationalise foreign businesses which chose to leave the Russian market because of the war.
Moscow’s mayor, Sergei Sobyanin, wrote on his personal website: “The foreign owner decided to close the Renault plant in Moscow. This is his right, but we cannot allow thousands of workers to be left without work.
“Therefore, I decided to take the plant to the balance of the city and resume the production of passenger cars under the historical Moskvitch brand.”
Sobayanin promised to retain “most of the team directly working at the plant and with its subcontractors”.
He also outlined a revived business plan that would see the state-owned factory produce cars with an internal combustion engine as well as electric cars at an unspecified point in the future under the technological partnership of Russian truck and engine manufacturer, Kamaz.
“In addition, together with Kamaz and the Ministry of Industry and Trade of Russia, we are working on localising the production of the maximum number of auto components in Russia,” he wrote.
“The automobile plant on Volgogradsky Prospekt has a long and glorious history. Almost a hundred years ago, he started with the production of Ford cars. For decades, the legendary domestic ‘Moskvitchs’ were produced here.
Since 1998, the plant has cooperated with Renault, and Logans, Dusters and Sanderos have rolled off its assembly line. In 2022, we will open a new page in the history of Moskvitch.”
Renault confirmed on Monday that it had sold its 67.69 per cent stake in Avtovaz as well as its 100 per cent holding in Renault Russia to the Russian Central Research and Development Automobile and Engine Institute, also known as Nami.
According to well-placed sources quoted by Reuters, both entities were sold to the state for a nominal fee of one ruble each ($0.02 Australian cents) with a six-year option for Renault to buy it back.
“Today, we have taken a difficult but necessary decision, and we are making a responsible choice towards our 45,000 employees in Russia,” said Renault CEO, Luca de Meo.
Despite the asset write-down of around $USD2.2 billion ($AUD3.15 billion), Meo added the French carmaker would not rule out a return to the Russian market.
In 2021, Renault manufactured around 20 per cent of all new car sold in Russia, across both its Renault and Lada brands.
Moskvitch started making cars in 1929, ceasing production in the 2001.
Following the collapse of communism and an influx if Western carmakers, the company filed for bankruptcy in 2002. Popular models include the 1980s era Moskvitch 1500.
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