Renault Russia to start producing Moskvich cars

Moscow Mayor Sergei Sobyanin announced that he decided to put the Renault automotive plant on the city books, RIA Novosti reports.

The mayor explained that the Renault plant in Moscow would resume the production of cars under the historical Moskvich brand.

In the future, the company will also launch the production of electric vehicles, he added.

Sobyanin also assured that the city would retain most of the employees of the plant after the owner left the Russian market.

Earlier on May 16, it became known that the Russian assets of the Renault group were transferred to state ownership. The company's share in AvtoVAZ will be transferred to FSUE NAMI, while the Renault Russia plant — to Moscow. The Moscow government will own 100 percent of the shares of CJSC Renault Russia.

In late April, the head of the Ministry of Industry and Trade Denis Manturov announced Renault's plans to transfer its 68 percent stake in the company to the Russian side. The concern will have an opportunity to buy back the share within five to six years.

Moskvich was a Soviet and Russian automotive production that existed from 1930 to 2010. The plant was known for producing cars of the same brand. The brand ceased to exist in the early 2000s. In 2010, Moskvich was officially liquidated amid bankruptcy. In 1998, the company came under the control of Renault Russia and has been producing the cars of the French brand ever since.

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Author`s name: Editorial Team, Editor: Dmitry Sudakov