By on November 16, 2009

Russia and VAZ are tight like that...

Renault may be about to learn the folly of buying into a Russian company with close ties to the Russian government instead of establishing a presence of their own. Renault recently took a 25% stake in Avtovaz and things have gone from bad to worse. Avtovaz cut its staff by 25% and is now teetering on the brink of bankruptcy. Which is why Russia’s deputy prime minister, Igor Shuvalov, on Sunday said “If the Renault-Nissan alliance wishes to increase its participation to the point where it takes control, Russia will not be against it,”. He then went on to say “we will have to go to other potential partners and investors,”. These are the words which Renault should pay close attention to.

There is a general rules of thumb if you want to do business in Russia, the Kremlin always gets its way. Want proof? Look at Yukos and TNK-BP. Both are cases where the Kremlin got involved and got its way. In the case TNK-BP, they forced a change of management so that it was Russian tilted and in the case of Yukos, well, the CEO is now in a Siberian prison. But despite this, Renault is feeling brave by saying they will take part in restructuring but not increase their stake. Renault can’t value the Russian market too much because if they annoy the Kremlin too much, life could be made very hard for them in the land of Vodka and cossack dancing. Just ask Mikhail Khodorkovsky.

Get the latest TTAC e-Newsletter!

No Comments on “Renault Plays Russian Roulette...”

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Re: Ramcharger Rebirth

    Vulpine - They weren’t all that small, NoGoYo. After all, they were built with a full-sized pickup cab and a short bed with no wall between cab and bed–kinda like modern...
  • Re: Reader Review: 2013 BMW 128i M-Sport

    DeadWeight - Derek! Long time, no hear. I hope the new job is going well, man. Good to see you again.
  • Re: Ramcharger Rebirth

    mason - Your obviously quite confused. Gas out torques diesel now? Where are the gas powered tractors hauling 100k lbs down the highway? Take a 300 HP gas engine and a 300 HP diesl...
  • Re: Reader Review: 2013 BMW 128i M-Sport

    ajla - I meant to write E46 (which from archived road tests look to have been 3200-3300lbs), not E36. And, yes they would have needed to go with a higher displacement...
  • Re: Ramcharger Rebirth

    Ko1 - Nothing to do with Jeep. I’m talking about Dodge’s 1977-’81 “Adult Toys” lineup. The orange truck on the TV show Simon & Simon was a macho...
  • Re: Full-size SUVs Aren’t Taking Part in the SUV Boom

    JohnTaurus_3.0_AX4N - @stuki He’s thinking of the Argentina “Death Squads”, pretty much “secret police” who went...
  • Re: Inside Stories From the War Between Automakers And Dealers Over Exports

    plee - Having been a Porsche sales rep before I retired a couple of years ago, I am aware that the Porsche US sales office gets...
  • Re: Reader Review: 2013 BMW 128i M-Sport

    krhodes1 - Ah, now I have the urge to go polish my tips! Well done! I did the BMW Performance Intake as well. Which is STUPID expensive for what it is, but adds that...
  • Re: Reader Review: 2013 BMW 128i M-Sport

    krhodes1 - The most powerful N/A 3.0L non-M six BMW sold in the US is the ~265hp variable intake version of the N52. In other markets they sold a direct injection...
  • Re: Full-size SUVs Aren’t Taking Part in the SUV Boom

    JohnTaurus_3.0_AX4N - I can relate to his devotion to details. My personal bias has me hoping it isnt a Toyota, but my quirky nature has me...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Bark M., United States
  • Chris Tonn, United States
  • Bozi Tatarevic, United States
  • Vojta Dobes, Czech Republic

Get No-holds-barred, take-no-prisoners Automotive News in your Facebook Feed!

Already Liked