French Automaker Renault Faces $110 Million Lawsuit in Russia

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.

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