Russia: Renault restarts production, Avtovaz suspends it again


(Reuters) – Renault restarted production of vehicles at its Moscow plant on Monday, a spokeswoman for the French automaker told Reuters, whose local subsidiary Avtovaz on the other hand announced a new partial halt to its Russian production due to lack of components. .

The diamond manufacturer, the most exposed in the sector to Russia, had suspended operations at its Moscow assembly plant at the end of February, a decision which it had attributed to “a forced change in the existing logistics routes” after the Russian invasion of Ukraine.

Avtovaz, the leading Russian car manufacturer, announced on Monday a new partial interruption of production at its sites in Togliatti and Izhevsk from March 21 to 25 due to shortages of electronic components. The group has already suspended its activity several times this month due to irregular supplies of parts.

Renault produces two models – the Logan and the Sandero – for the Russian Izhevsk market, alongside Lada brand models.

Avtovaz said the Izhevsk plant would continue to produce the Lada Vesta and models based on Renault’s B0 platform on Monday and Tuesday.

On the other hand, all assembly lines will be stopped from March 23 to 25, but some production activities will be maintained during this period, Avtovaz added.

The war in Ukraine placed Renault in a delicate situation. A permanent exit from Russia would weaken the recovery of the group, of which Avtovaz represented half of the current operating result of the automotive division last year.

According to two sources familiar with the matter, the board of directors of the French group studied different scenarios ten days ago, but decided for the time being to maintain its presence in Russia as it is in accordance with international sanctions and with the support of its main shareholder, the French State.

(Reuters editorial staff, with Gilles Guillaume and Leigh Thomas Paris, told by Bertrand Boucey)



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