The Russian network of Renault dealers faces bankruptcy

The withdrawal of the French automaker Renault from the Russian market may lead to the bankruptcy of many domestic dealers. Information about this appeared in specialized publications referring to insiders who are well acquainted with the state of affairs within the oldest dealer network.

On May 16, 2022, information was made public that the Russian assets of the Renault group were actually being nationalized. The share in AvtoVAZ will be owned by FSUE NAMI. It is possible that Duster crossovers will now be produced under the Lada brand. The Renault plant in Moscow becomes the property of the city, and it plans to produce cars of Chinese brands.

Information about the threat of ruin of a significant part of the brand's sales representatives in Russia is contained in the appeal of the head of the Polytech Foundation Vyacheslav Zhigalov. It is addressed to the head of the Ministry of Industry and Trade Denis Manturov.

According to Fontanka, referring to the words of Vyacheslav Zhigalov, more than 60% of Renault car sales in Russia accounted for the Duster and Logan brands. About 12 thousand people worked in a network of 150 dealerships. Now her fate may turn out to be unenviable.

The oldest dealer network in Russia may partially close or become bankrupt.

It is known that both deals of the state with Renault, which were previously reported by the Ministry of Industry and Trade, have already received approval from the FAS of the Russian Federation. One of the important conditions of the French contract with Avtovaz is the possibility of repurchasing Renault's share within a six-year period. Therefore, experts admit that the brand can not only return to the automotive market, but also start production anew.

In these conditions, there are fears that Lada dealers will become a priority position in customer service in Russia. They, apparently, will receive new models of cars from Togliatti.

A third of car dealerships in the country are multi-brand and will continue to serve customers as before. At the same time, it is unknown what fate will be in store for those monobrand dealers who previously served exclusively Renault cars. The situation could be helped by the transfer of their rights to sell cars under the Lada brand. But there is also no final clarity on which Renault cars will be produced in this way.