What options is Renault considering for its majority stake in AvtoVAZ?

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Renault is Assessing Options for its Stake in AvtoVAZ Amidst Evolving Environmental Factors

Renault Group is currently evaluating various potential courses of action regarding its majority stake in its Russian affiliate, AvtoVAZ. This assessment is being conducted while also considering the prevailing geopolitical and economic climate and the company's commitment to its approximately 45,000 employees in Russia. The company has already taken steps to suspend operations at its Moscow manufacturing plant.
Suspension of Moscow Operations

Renault has announced the immediate suspension of its industrial activities at its manufacturing plant located in Moscow. This decision was made following calls from Ukraine for a boycott of the company due to its continued presence in the Russian market. This move marks a significant shift after the company had previously resumed production at its plants near Moscow subsequent to Russia's invasion of Ukraine.
Consideration of AvtoVAZ Stake

The French automotive giant is actively assessing the "possible options" available for its stake in AvtoVAZ, Russia's top automaker. Renault holds a 69 per cent controlling interest in AvtoVAZ, which is part of the Renault-Nissan alliance. The company's statement indicated that this evaluation takes into account the current environment and the need to act responsibly towards its extensive workforce in Russia.
Financial Outlook Revision

As a consequence of the evolving situation and the suspension of operations, Renault Group has revised its financial outlook for 2022. The company now anticipates a group operating margin of approximately 3 per cent, a reduction from its previous forecast of at least 4 per cent. This financial recalibration reflects the impact of its exposure to the Russian market and related operational adjustments.

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What options is Renault considering for its majority stake in AvtoVAZ?

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