Russia sanctions
Moskvich replaces Renault – Moscow mayor takes over Renault plant

The splendor of the USSR - Moskvich 412. It was designed in the 60s.

The splendor of the USSR – Moskvich 412. It was designed in the 60s.

© Sergei Korovkin 84 / Wikimedia

Renault finally withdraws from Russia and sells shares in Renault plants. Moscow Mayor Sergei Sobyanin announced that he would revive the USSR brand Moskvich.

As a result of Western sanctions, many companies withdrew from Russia. So does car maker Renault. Factories are suspended and production cannot continue without the support of the parent company.

Now it became clear for the first time how the Kremlin will deal with the problem: the Renault plant was transferred to state ownership and it seems that it will continue under state supervision. Renault described the sale of its shares in the city of Moscow as a “necessary decision”. “We made a difficult but necessary decision today and are making a responsible choice towards our 45,000 employees in Russia,” said CEO Luca de Meo. In 2005, Renault began producing cars in Russia as part of a joint venture with the city of Moscow. The sale ends the Renault era.

“I decided to classify the plant as a city property and to resume production under the historical brand Moskvich,” Moscow Mayor Sergei Sobyanin was quoted by the Moscow Times as saying. We will turn a new page in the history of Moskvich in 2022. ”Most of the employees and suppliers of the Renault plant will continue to work. Today, Moskvich is just a traditional name and not a real company. In 2001, car production ended, and in 2006 the company was liquidated. Their cars formed streets The Soviet Union for 75 years.

little more than a name

The plan was immediately joked about online, in reference to the brand’s old models. The joke is obvious, but it does not make sense, because Moskvich will be little more than the traditional name and logo of the new company. The state takeover of abandoned production facilities was expected, the next step should be exciting. It is unlikely that the mayor of Moscow could reasonably develop his modern cars. Due to potential legal problems, Renault models can no longer be produced.

What kind of cars are built?

The factories of Western brands assemble vehicles in Russia, and the necessary parts are only partially produced in Russia. Basic ingredients – or imported – from the West. In principle, the dilemma can be resolved with a new partner company from China. The next Moskvitch will actually be the Beijing car.

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