Renault suspends operations in Russia and outlines steps for AVTOVAZ
Since March 23, Renault has paused production activities in Russia. The French group is evaluating several paths for its 68 percent stake in AVTOVAZ and has pledged to support the company’s 45,000 Russian employees, though the method of assistance remains unspecified. AVTOVAZ likewise confirmed in a press release that every possible measure has been taken in recent weeks to keep workers employed.
The summer production pause has been extended to April as the company works to stabilize supply chains and identify substitute components sourced domestically. AVTOVAZ is also preparing simplified versions of certain Lada models designed to minimize dependence on imported parts.
Expert Commentary
Maxim Kadakov, editor in chief of the automobile magazine Behind the Wheel, provides insight into the near term challenges. Kadakov notes that in a worst‑case scenario, AVTOVAZ could produce basic variants such as Grant and two Niva configurations—Travel and Legend—without ABS, airbags, or a full multimedia system, and with a reduced steering wheel control setup. He emphasizes that the factory would still need time to shift to simpler configurations, and this change would not automatically translate into lower prices.
Kadakov also warns of higher costs for simpler configurations, potential logistics issues, and the hesitation of local component suppliers to operate at reduced margins. The result could be vehicles with noticeable questions or limitations as teams adjust to new sourcing and assembly requirements.
Regarding popular models like Largus, XRAY, and Vesta, the absence of imported components could stretch the restoration of production to months. Predicting exact timelines is difficult, and even AVTOVAZ may not be able to confirm dates at this stage.
It should be recalled that Renault Group holds a 68 percent stake in AVTOVAZ, with Rostec owning the remaining 32 percent. AVTOVAZ’s production facilities are located in Tolyatti and Izhevsk, reflecting the scale of Russia’s automotive industry in which these decisions play a pivotal role.
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