(Updated with details, quotes)
by Gilles Guillaume and Nick Carey
PARIS/LONDON, May 9 (Reuters) – Renault hopes to conclude negotiations on the future of its activities in Russia within a few weeks, the chief executive of the French car group said on Monday during a conference.
Manufacturer most exposed to Russia, its second market behind France, Renault suspended its activities in Moscow and began a reflection on the future of its controlling stake in the Russian group Avtovaz at the end of March, a month after the invasion of Ukraine by Russia.
“I think we will be able, in the next few weeks, to reach a conclusion, at least I hope so,” said Luca de Meo during the Future of the Car 2022 conference organized by the Financial Times, adding that negotiations were continuing.
The general manager of Renault explained that in the current context, it was totally impossible to continue an activity in Russia but that he was also trying to protect his assets and his investments on the spot. “We also know that we worked for ten years and invested a lot of time there,” he added.
In late April, Russia said Renault would transfer its 68% stake in Avtovaz, the country’s top automaker, to an automotive research institute for a symbolic rouble. The diamond group has always refused to comment on this scenario.
Luca de Meo also said that Renault was currently working on 10 to 15 joint projects with its partner Nissan, proof he said of the interest “in staying together”.
Renault’s plan to separate its electrical and thermal activities in order to give more visibility to the former raises questions about the structure of the Franco-Japanese alliance.
Luca de Meo added that the “door is open” for his partners Nissan and Mitsubishi to follow suit in this project aimed at isolating high-growth activities.
Due to their geographical footprint, the two Japanese partners of Renault could however progress more slowly in this field than the French group, very present on a European market advancing at a forced march towards the electric. (Gilles Guillaume and Nick Carey, edited by Jean-Michel Bélot and Bertrand Boucey)