3.6 C
New York
Sunday, May 22, 2022
HomeNewsRenault Stops Production In Russia, Adjusts 2022 Financial Outlook

Renault Stops Production In Russia, Adjusts 2022 Financial Outlook

Lada will try to reduce exposure to imported components.

Russia invaded Ukraine with a full-scale military operation exactly a month ago, on February 24, transforming the globe in ways not seen since the end of WWII. The car industry was one of the first to respond to the conflict, with practically every major brand halting operations in Russia in order to comply with international sanctions. Renault’s production efforts in the country have been halted as of today, joining Toyota, Honda, Ford, and other manufacturers in scaling back their operations in the Russian Federation.

Renault’s board of directors has decided to halt production at its facility in Moscow, following a meeting of the company’s board of directors. Renault is presently “evaluating the various options” in regards to its ownership in AvtoVAZ, the Lada carmaker. The French company claims to be “doing properly towards its 45,000 employees in Russia” in an official press release, yet there is no mention of the distribution of Renault cars made outside the nation.

Read More: Ferrari Donates €1M To Ukraine, Lamborghini Halts …

Read More: 2022 Russian GP Cancelled Amid Russia-Ukraine Crisis

Renault’s announcement comes only hours after Ukraine’s President, Volodymyr Zelensky, advised French legislators that French companies must leave Russia to help Ukraine’s defence efforts. Ukraine’s foreign minister, Dmytro Kuleba, has called for a global boycott of Renault. “The essential procedures to comply with international sanctions” are already being implemented, according to the company.

Meanwhile, AvtoVAZ issued a statement claiming it is “closely monitoring the situation and in continual contact with federal and regional authorities, as well as the Company’s shareholders.” Launching modified versions of existing models with restricted exposure to foreign components is one of the measures the automaker is considering.

Trending Now:  2021 Cadillac XT4 Luxury Price, Engine, Features, and Specifications

Renault has changed its financial outlook for 2022 as a result of its exit from Russia. Renault now forecasts an operating margin of roughly 3%, down from a forecast of more than 4% previously. In addition, the previously reported operating free cash flow of almost one billion euros has been downgraded to “positive.” Last year, Russia was Renault’s second-largest market, trailing huge countries like as Germany, Italy, and Brazil.

Source: Renault Group

Read More: BMW Stops Making Cars In Russia And Halts Exports To …

Read More: Russian EV Chargers Hacked, Screen Reads “Glory To …

Team Autobizzhttp://autobizz.in
Anuj Farkade Co-Founder Autobizz | Automotive Engineer | Fresh out of college, immensely passionate about automobiles along with a flair for writing. Looking forward to being a part of this industry and joining it's glorious journey

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Must Read

duPont REGISTRY NEWS on Instagram_ _Verde Zeltweg Ferrari 812 GTS looking amazing -- - -- _tfjj - _ferrari _812gts _gts _hypercar _hypercars _supercar _supercars _sportscar___CbjEKcxLvrg_2(JPG)

Top five sports cars 2022

0
Here are the top five sports cars of 2022 that attract a lot of attention. The sportscars are those machines that grab eyeballs. They...