Russia is Renault Group’s next-premier current market outside the house of France. Lada has a lot more than 20 percent of the market, and de Meo experienced planned to mix the model with Romanian brand name Dacia to share platforms and growth expenses.
Even however Russia accounted for a substantial portion of Renault’s gains final yr, de Meo stated the income stream was not integral to the group’s finances for the reason that substantially of it was employed to services Avtovaz’s debt. The Russian automaker was deeply unprofitable right until 2018, following Renault entirely built-in it into its balance sheet.
“It truly is not heading to have a enormous affect on our potential to finance other tasks,” de Meo reported.
Renault suggests it has invested about 2 billion euros in AvtoVAZ in the very last 10 years, which includes upgrading the large Togliatti factory.
De Meo reported Monday that Renault was trying to obtain a way to preserve positions for its staff members in Russia. He characterised the selection in late March to depart Russia as “painful” but said there were being much more important problems suitable now than corporate income.
“We naturally have a accountability to our 45,000 staff members in Russia,” he explained. “So we are searching at a remedy that will make it possible for them to hold a task into the foreseeable future.”
Reuters contributed to this report