A group of Russian car dealerships is demanding 8.5 billion rubles ($110 million) in compensation from French automaker Renault, alleging financial losses following the company’s exit from the country. The Russian Renault dealers submitted a proposal to Renault France on May 2, addressing the company’s president, Jean-Dominique Senard.
According to Aleksey Podshchekoldin, president of the Russian Automobile Dealers Association, this marks their second attempt to settle the compensation issue out of court. Podshchekoldin believes that reaching an agreement would be the most favorable outcome, given the longstanding relationship between Renault and Russia, as well as the brand’s popularity in the country. Over the past two decades, more than 2 million vehicles have been sold at over 150 dealerships across Russia.
The association has cautioned that if a resolution is not reached, the dealers will be prepared to take legal action, which could damage Renault’s reputation and hinder the brand’s potential return to Russia.
After halting operations in March, Renault officially exited the Russian market in mid-May. The company divested its 100% stake in Renault Russia and its 68% stake in Russian car manufacturer AVTOVAZ. These assets were subsequently transferred to Russian state ownership. Renault recorded a write-down of over $2 billion due to its withdrawal from its second-largest market.
YouTube Link: https://www.youtube.com/shorts/E-Gkbn7OfF8
French car maker Renault has been stealing the headlines for long now, and has promised now that the move to make two business units for electronic and conventional car production could each employ over 10,000 staff members by the end of 2023.
Renault recently released a statement and mentioned that it was currently assessing options and was in the move towards fossil-free vehicles.
“The aim of these strategic reflections is to adapt each technology, drawing on the group’s strengths and expertise on its various markets and within the Alliance”, Renault said.
Managers at Renault reiterated that jobs for EV production within France will bundle up, while workers for the production of conventional cars will be located abroad. Sources from earlier in the year had revealed that Chief Executive Luca de Meo was interested in splitting up the group, despite the potential cost overruns that it would lead to.
Renault is currently playing catch with rivals like Volkswagen and Tesla, both of whom have shot up ahead in the electric vehicle market. Several groups of workers are already being outlined for the shift in operations. There will be thermal, as well as hybrid and electric productions.
YouTube Link: https://www.youtube.com/watch?v=WSH983zUNIo
French Car manufacturer and automotive giant Renault has shut down its operations in the city of Moscow, Russia after officials in Kyiv called for a boycott of Russia and the company. The current presence of Renault in Russia was brought to the fore multiple times and has been a matter of contention since long.
The growing tensions go to prove that it is time for Renault to shut down operations in Russia and side with Ukraine.
“Renault Group has to revise its 2022 financial outlook with a Group operating margin of around 3 percent versus at least 4 percent previously,” it said.
Ukraine’s foreign minister on Wednesday called for a global boycott of Renault over its earlier refusal to leave the Russian market in the aftermath of the Kremlin’s invasion of Ukraine.
“Renault refuses to pull out of Russia,” Foreign Minister Dmytro Kuleba said on Twitter ahead of the company’s announcement. “I call on customers and businesses around the globe to boycott Group Renault.”
Renault is particularly exposed as it invested in AvtoVAZ alongside Rostec, a state-owned defence conglomerate run by a sanctioned close ally of Russian President Vladimir Putin.
“Regarding its stake in AvtoVAZ, Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia,” the statement said.
YouTube Link: https://www.youtube.com/watch?v=7cYnA9I5tHY
A French Media Daily has reported that French automobile giant Renault has earmarked three of its manufacturing and assembling factories for an early closure in France. The move has come as a result of the recent COVID-19 pandemic, as companies reel from lowered consumer interest toward automobiles.
Renault as a company has plenty of fixed costs to cover and the company might not be able to continue on this trend going into the future. According to reports from the newspaper, it is the Alpine A110 producing factory on the outskirts of Paris that will be the first to shut down.
Similarly, Renault will also shut down another facility located at Flins.
Recently, thousands protested on the streets of France against the job cuts on the cards by Renault.
“It’s an earthquake that is taking place. We want to keep our company here,” Jerome Delvaux, a union member, said.
“This demonstration today is very important, even if it is a first step, to show the government and Renault that workers and residents of this area are committed to this company and that we have support,” Delvaux added.
“We need these jobs, otherwise it’s a whole territory that will die,” he said.
The company is looking to target savings, but these savings have certain repercussions that it isn’t accounting for.
YouTube Link: https://www.youtube.com/watch?v=xNIOehncMj4
Drivers when they go on the roads are looking for a lot of convenience and performance from the car they are driving. Hence, when a car fails to meet their expectation they are quick to note it down and take it off from the list of cars that they would recommend others to drive.
In a poll conducted by car magazine Auto Express, British drivers were asked to vote the car makes and models based on the performance they provide on the road.
Two French car manufacturers gathered lamentable results on the poll, as they picked up the last positions in the poll of 35. All voters weren’t in favor of Peugeot and Renault, as both of them picked the last spots on the poll.
Peugeot was voted the worst by the voters as it got the last stop on the poll, while Renault finished second to last at 34th. Citroen, which is another French manufacturer, finished 28th on the poll!
The poll was topped by Skoda, with Lexus, Porsche, Jaguar and Honda coming 2nd, 3rd, 4th and 5th respectively. British drivers haven’t taken a liking for both Peugeot and Renault, which is a concern for both these car manufacturers.
When you speak of an esteemed French car manufacturing company such as Renault, you would expect for the company to invest all of its resources into the development and manufacturing of vehicles, so that it might be able to something that is actually useful for humanity, on the whole. However, when you consider some of Renault’s activities in recent, it certainly does not appear to be the case.
Those who love reading juicy and unbiased news, on the French automotive industry, have run out of luck it seem, owing to how Renault has finally decided to take “unbiased” completely out of the proposition. The company has purchased a 40 percent stake in the Challenges Group, which is a French publishing company, known for the news that it delivers on the automotive industry of cars. This means that people of France will read what Renault will feed on the matters of French cars. So much for unbiased journalism!
The surprising part of it all is that Renault is known, all over the world, as one of the leading players in the international automotive industry. However, when you consider that the company had to stoop so low in order to contend with the fact that it is being left out of the competition by companies that are ACTUALLY serious about taking the automotive industry of the world forward, you cannot help but consider the crisis that Renault must be which propelled it into making such a move.
Renault needs to realize that the company will be better served by making investments in cars rather than news agencies, owing to how it is the cars that will ultimately bring in profits and not public sentiments. If a car manufacturer is able to put forward the best products in the market, purchasing a news agency should be the least of its concerns.
Video Link: https://www.youtube.com/watch?v=Dj6cnEeFr8c
Everyone who is involved in the French automotive industry is aware of the surreal knot that is being tied between Renault and Nissan. When you involve Mitsubishi into the mix itself, considering how it is the third lover on the bed, the scenario appears to be a little too good for these companies. A manifestation of this fact lies in how the net profit of these three companies amounts to somewhere around 9.4 billion Euros, making the alliance the fourth strongest on the face of Mother Earth.
Regardless of how lucrative the alliance might have been for the companies in question, the fact remains that results are not, likely, to be same from the perspective of France, as a whole. When you get into the comparison of the companies, you realize that the net income per head generated by the employees of Renault is, almost, half of what is generated by the employees of Nissan. Consequently, the first order of business of the combined group would, obviously, be to stop some of the production lines in France. This will result into the loss of employment for a lot of people, owing to how the automotive production lines are responsible for the bread and butter of a large number of families in France.
The French government has got fifteen percent ownership share in Renault, meaning that it has got the veto power to stop such a catastrophe from happening. If such a scenario is about to happen, therefore, the commoners of France would expect their government to stand up for their rights and interests, rather than looking to uphold some obscure economic principle relating to international trade. The French government has got an influence on the alliance, which is the reason why it has to ensure that things work out in favor of France!
Video link: https://www.youtube.com/watch?v=JC-mkuqidOg
When you speak of an esteemed French car manufacturing company such as Renault, you would expect for the company to invest all of its resources into the development and manufacturing of vehicles, so that it might be able to produce something that is actually useful for humanity. However, some of Renault’s recent activities certainly do not appear to be towards this end.
Those who love reading juicy and unbiased news on the French automotive industry, have run out of luck it seems, owing to how Renault has finally decided to take “unbiased” completely out of the proposition.
The company has purchased a 40 percent stake in the Challenges Group, which is a French publishing company, known for news that it delivers on the automotive industry. What this means is that people of France will read what Renault will feed on the matter of French cars. So much for unbiased journalism!
The surprising part of it all is that Renault is known, all over the world as one of the leading players in the international automotive industry. However, when you consider that the company had to stoop so low to contend with being left behind by companies that are ACTUALLY serious about taking the automotive industry forward, you have to consider the crisis that Renault must be in for it to make such a move.
Renault needs to realize that the company will be better served by making investments in cars rather than news agencies, owing to how it is the cars that will ultimately bring in profits and not public sentiment. If a car manufacturer is able to put forward the best products in the market, purchasing a news agency should be the least of its concerns.
Nissan has recently been involved in talks with the French government for the purchase of stakes in Renault, as part of the merger prelude. For those who don’t already know, Renault and Nissan have been in alliance for quite some time now – since 1999 to be exact, with Mitsubishi joining in on the fun recently as well. As a part of the alliance, Renault holds 43.4 % of the shares in Nissan, whereas Nissan holds 15 % of the stake in Renault. Recently, the alliance proposed a plan to the French government according to which not only would Paris give up its controlling at Renault but the company will relinquish its control over Nissan as well.
The proposition appears to be preposterous, especially when you consider the Tokyo market rules, according to which Renault will lose its entire stake in Nissan, as the deal will see Nissan’s stake in Renault exceed the mark of 25 %. This should be seen as nothing short of a disgrace for a country like France, which has always been one of the market leaders in this industry.
On top of that, the dilution of stake could be a risky game for the Macron government, owing to how they are still facing backlash for letting the TGV train makers fall into foreign hands. However, such a merger will have far more serious consequences, owing to how it will not only affect the country’s technological centers but hit the industrial jobs and the revenues that are collected from tax as well. What this means is that not only will the French lose out on their jobs but will need to contribute more to the state, in the name of tax as well.
Regardless of how lucrative the deal offered by Nissan might be, the French government needs to learn from its mistakes in the past and keep the companies that the French created with their blood and sweat from falling into foreign hands. If not, then it is the commoners of France who will suffer…again!
Renault has, recently, decided to re-launch its Alpine brand after a period of 20 years. The CEO of Renault had inaugurated the production line for the new A110, back in December, in a small coastal town in the northwest region of France, called Dieppe. Dieppe is among the poorest communities in the Normandy region, and the venture is bound to aid the living standards of the people there. Everything would have been perfect, however, if the spokespersons for Renault hadn’t resorted to lies as means for boasting their brand…yet again!
Renault claimed that its factory in Dieppe is the only one that’s building cars with aluminum bodies and chassis in the whole of Europe. The spokesperson had, perhaps, assumed the UK to not be a part of Europe, when making such a bold remark, owing to how JLR—a company based in the UK—has already been in the business of manufacturing cars with aluminum bodies and chassis. Either Renault needs an elementary lesson in geography to learn that the UK is one of the most powerful forces in Europe, or they need to build a car that can actually match up to the standard of JLR’s F-150, so that they don’t have to make audacious claims of greatness. It’s true, sadly, that everyone lies, whether it’s a person or a mere legal entity!