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Renault confirms sale of AvtoVAZ

The Renault Group has bought its stake in AvtoVAZ and its Renault Russia operations, on the again of Vladimir Putin’s invasion of Ukraine.

Its 67.69 per cent stake in AvtoVAZ (father or mother firm for Lada) has been bought to the Russian Central Analysis and Growth Vehicle and Engine Institute (NAMI), and Renault Group shares in Renault Russia have been bought to the Moscow Metropolis entity.

The deal features a clause permitting the Group to purchase again into Russia at various factors within the subsequent six years.

“The closing of those transactions is just not topic to any circumstances, and all required approvals have been obtained,” the Renault Group mentioned in an announcement.

“In the present day, we’ve taken a troublesome however mandatory resolution; and we’re making a accountable alternative in direction of our 45,000 workers in Russia, whereas preserving the Group’s efficiency and our skill to return to the nation sooner or later, in a special context,” mentioned Luca de Meo, Renault Group CEO, in an announcement.

“I’m assured within the Renault Group’s skill to additional speed up its transformation and exceed its mid-term targets,” he mentioned.

Renault has introduced a “non-cash adjustment cost amounting to the accounting worth of the consolidated intangible property, property, plant and tools and goodwill of the Group in Russia” to be recorded in its first-half monetary outcomes for 2022.

Whereas some automakers, together with Volkswagen, Toyota, and Ford, have been fast to halt manufacturing and stop most work in Russia after it invaded Ukraine in February, Renault was extra cautious in its method.

It even restarted manufacturing in late March, solely to backtrack a day later.

On the time Lada mentioned it was making an attempt to interchange “some vital imported parts with different options”, and dealing on particular variations of its automobiles “with lowered publicity to imported parts”.

Final 12 months the corporate bought 385,000 Lada automobiles globally, representing 14.3 per cent of the Renault Group’s whole quantity.

It’s unknown how the divestment of Lada will have an effect on the automaker’s Renaulation plan, which known as for Dacia to maneuver barely upmarket and Lada to select up the slack on the backside finish of the market.

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