Bucking the trend of the world’s major car manufacturers, Renault has decided to resume car production in Russia…

Renault Resumes Production Russia

Renault, the French car manufacturer, has resumed car production at its Russian facilities. It had previously suspended its operations in the country, citing supply-chain issues caused by President Putin’s invasion of Ukraine. Now, however, it’s bucking the industry trend by resuming its operations. It comes at a time when most of the world’s major car manufacturers have ceased their operations entirely.

Notably, Renault has a two-thirds stake in the Russian car brand Avtovaz. As consequence, it has around 40,000 employees in the Russian Federation. This has caused the company a serious headache, as the country faces enormous sanctions. In 2021, Avtovaz sold 350,000 vehicles, generating a pre-tax profit of £156 million. Notably, Renault’s main shareholder, the French government, has backed its decision to resume production; a fact that will no doubt raise eyebrows given President Macron’s condemnation of the invasion.

Ongoing Controversy

Firms from around the world are facing enormous pressure when it comes to their operations in Russia. Major brands face a looming PR disaster from seemingly profiting from a market that’s fuelling Putin’s war machine in Ukraine; which, it’s claimed, has carried out a number of war crimes. Major car brands have retreated from the market, but other industries have faced similar pressures.

What separates Renault from other businesses is the fact that such a large part of it is owned by a government; and that, in this case, said government has been publicly so vocal in its opposition to Russia’s so-called ‘special military operation’. Critics will no doubt argue that Renault’s decision to remain in the Russian market makes a mockery of the French government’s public statements.

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