Renault Suspends Manufacturing In Russia After Backlash
Published On Mar 24, 2022 04:50 PM By Tarun
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In the aftermath of the Russian invasion of Ukraine, the majority of the global auto manufacturers have suspended operations in Russia
Renault has suspended manufacturing activities in Russia again after it recently resumed car production in the country. For context, most global carmakers had halted production in Russia following what Moscow calls a “special military operation” of Ukraine that got underway on February 24.
The French automaker, after receiving severe backlash, has pulled the plug on manufacturing in Moscow. Company officials are assessing all available options for its 45,000 employees in the warring nation, factoring in the current crisis and the geopolitical environment.
The automaker is also rethinking its majority stake in AVTOVAZ, a Russian automobile manufacturer. This is almost certain to affect the company's financial outlook, evident from the fact that it has lowered its group operating margin target to three percent (previously four percent). The manufacturer sells cars like the Duster, Arkana, Sandero, Logan, and Kaptur in Russia.
Global carmakers like Hyundai, Volkswagen, Ford, Mitsubishi, and Toyota have also shut their production plants in Russia, while Mercedes and Suzuki have suspended exports to the country.
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