Renault is currently the largest stakeholder of Lada’s parent company AvtoVAZ with a 68% stake in the utility Russian automaker. With Russia’s invasion of the Ukraine, the French brand has committed to offload its stake in Lada for roughly 20 cents.
Lada is by no means a small brand, it might not have the firepower to take on Toyota or Volkswagen globally but managed to sell 362,356 cars in Russia 2019, which was a 1% increase from the year before. Renault on the other hand is responsible for building around 20% of all new cars sold in Russia across both its own marque and that of Lada’s.
Renault bought into the company in 2008 and eventually increased its stake to 68% becoming a majority stakeholder in the brand that was originally founded in Soviet Russia; 1973. Reanult has committed to offload its stake in Lada for roughly ₽1 (1 ruble) which equates to roughly 20 cents. This comes after Russia’s invasion of Ukraine saw the French automaker experience supply chain shocks amidst the global condemnation of the unnecessary war.
More alarmingly is that Renault stocks collapsed by nearly a quarter after it halted production in the country following the outbreak of war. Going from €29,22 on the 24th of February and plummeting to a low of €21,32 on the 8th of March. Over the past 6 months, this equates to a 25.70% decline despite Renault stocks strengthening to €23,58 in early April.
All operations which include branding, factories and business infrastructure will be acquired by the state-run Central Scientific Research Automobile and Automotive Engines Institute based in Moscow. Renault and the French government have not yet provided a statement on this and it is not known how this will affect Lada’s lineup.