French Automaker, Renault Suspends Industrial Activities In Russia

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Boulogne-Billancourt, March 23rd, 2022 – The Board of Directors of Renault Group met today and approved the following items:

Renault Group activities in its manufacturing plant in Moscow are suspended as of today.

Regarding its stake in AVTOVAZ, Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia.

Renault Group reminds that it already implements the necessary measures to comply with international sanctions.

Consequently, Renault Group has to revise its 2022 financial outlook with:

A Group operating margin of around 3% (vs ≥ 4% previously);
A positive automotive operating free cash flow (vs ≥ €1Bn previously).

A non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill should be recorded at the time of the 2022 first half results.

As of December 31, 2021, this value amounted to 2,195 million euros.

Renault Group remains focused on implementing its Renaulution strategic plan.
The Group will pursue its commercial policy focused on value, strengthen its competitiveness, and accelerate its cost reduction program.

Earlier, Ukraine Foreign Minister, Dymtro Kuleba called for a boycott of Renault for their refusal to stop production in Moscow.

Renault refuses to pull out of Russia. Not that it should surprise anyone when Renault supports a brutal war of aggression in Europe.

But mistakes must come with a price, especially when repeated. I call on customers and businesses around the globe to boycott Group Renault.

Kuleba did welcome Renault’s cessation of industrial activities.

I welcome @renaultgroup’s statement on cessation of industrial activities in Russia. Responsible move against the backdrop of Russia’s ongoing barbaric aggression against Ukraine.

Renault is ending its car production in Russia. This is as extraordinary as natural. Renault with its Avtovaz is the biggest car producer in Russia, but it imports 20% of the parts, no longer available.

Probably all Russia car production will stop soon. Western sanctions bite.