When Russian President Vladimir Putin decided to invade Ukraine, he not only signed a death warrant for thousands of people, but also condemned his motherland’s economy and, even more specifically, its automobile industry. Many brands have withdrawn from Russia or have suspended sales and production. The last manufacturer to leave the Russian Federation was Renault, and in its place will be manufactured Moskvitch from the Soviet era.
Renault sold its majority stake in the manufacturer AvtoVAZ to the Russian state for just one ruble (0.017 cents), although with an option to buy it back in six years. This same state institution took over the assets of Nissan in October for a value of one euro. Once the sale is complete, the Renault factory in the country’s capital will be repurposed to create “new” models of the well-known vehicle brand Moskvitch, who made some of the most boring cars in the world until the early 2000s.
Moskvitch are renowned for their extremely basic design and utilitarian nature. According to Times Live, there are almost 200,000 of these vehicles still registered in Russia, and almost a quarter of them are older than 35 years. With a solid production until the beginning of the new millennium, Moskvitch filed for bankruptcy shortly after being privatizedjust after the fall of communism in the early 1990s. Now, two decades later, the Russian firm looks set to return in December.
The Mayor of Moscow, Sergei Sobyanin, recently stated that production of Moskvitch vehicles will restart in December at the plant sold by Renault. The factory, renamed Moscow Moskvitch Automobile Plant in accordance with Reuters, has been dormant ever since, something the mayor blames on the broader auto market. “The industry has seriously failed this year, but nevertheless I hope we can launch Moskvitch in December with the help of the Ministry of Industry and Trade,” he said.
In parallel, the plant says it expects to produce 600 cars this year, 200 of them electric. He claims that Moscow has all the necessary experience to become the center of an electric vehicle industry. However, those production numbers are just a preview of what is to come, as the factory hopes to pick up the pace next year and produce 50,000 vehicles in 2023. For this you will receive 5 billion rubles (82 million euros) in investments from Moscow and the truck manufacturer Kamaz.
In accordance with Automotive News EuropeKamaz, which is looking for a partner to build new models, is teaming up with JAC Motors. The Chinese automaker is believed to supply not only the design and engineering platform, but also the tools the factory needs to build such vehicles. Perhaps they should also approach Ukrainian companies to supply them with braking systems and the occasional airbag in this throwback to the communist era.
Source: Automotive News Europe, Reuters
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