As a result of the actions, Renault is adjusting its forecast for the full year. Thus, the profit margin will be lower. The company said cash flow will also be significantly lower, but still positive.
Among the major foreign car manufacturers, Renault was the only company that kept its relations with Russia intact. The French want to prevent the Russian government from nationalizing their Russian branch AvtoVaz. Also because of the costs associated with it. AvtoVaz is a producer of Lada. But Renault is also assembled at the factories.
Renault gets about 10 percent of its revenue from Russia. Renault’s cautious stance will also be supported by the French government. He previously urged major French companies not to leave Russia in a hurry.
The automaker accounts for about 30 percent of the Russian auto market. The group has a workforce of about 40,000 employees in the country. Renault actually reduced production at its Moscow plant after the invasion. Two other AvtoVaz-operated plants in Togliatti and Izhevsk were closed due to a lack of spare parts.
Ukraine called earlier on Wednesday for a boycott of Renault because the French group refuses to leave Russia. Ukraine’s foreign minister called on consumers and businesses to stop doing business with the car brand via Twitter.
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