Renault immediately closes doors to Moscow factory | Financial

As a result of the measures, Renault is adjusting its expectations for the whole year. Thus, the profit margin will be lower. Cash flow will also be a lot lower, but still positive, the company said.

Of the major foreign car manufacturers, Renault was the only one to keep its ties with Russia intact. The French would like to prevent their Russian subsidiary AvtoVaz from being nationalized by the Russian government. Also because of the costs associated with it. AvtoVaz is the producer of Lada. But Renaults are also assembled in the factories.

Renault gets about 10 percent of its revenues from Russia. Renault’s cautious stance would also be supported by the French government. He previously urged large French companies not to leave Russia in a hurry.

The carmaker accounts for about 30 percent of the Russian car market. The group has a workforce of roughly 40,000 in the country. Renault already cut production at its Moscow plant after the invasion. Two other factories operated by AvtoVaz in Togliatti and Izhevsk have mostly been closed due to parts shortages.

Ukraine earlier on Wednesday called for a boycott of Renault because the French group refuses to leave Russia. The Ukrainian foreign minister called on consumers and companies to stop doing business with the car brand via Twitter.

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