Photo: YouTube Screenshot/Groupe Renault
The entire world is watching the series of events unfolding in over in Europe, fast escalating into an industrial problem as well, affecting all facets of business, including auto manufacturers. On Friday, French automaker Renault announced it would be shutting down some of its operations in Russia due to components shortage.
Apart from being highly resourceful in terms of minerals and metals vital to the auto manufacturing industry, Russia hosts several leading automotive assembly plants and factories, owned by the likes of Volkswagen, Renault, and Stellantis.
Renault said it would suspend some of its operations in the Eastern European country next week, after experiencing logistical issues leading to vital component shortages in its plants, Reuters reported. The French automaker operates three automotive assembly plants in Russia.
The announcement comes after the situation between Russia and its Ukraine neighbor countries escalated this week.
Avtovaz, Russia’s largest automaker, which is controlled by Renault, may also shut down operations in its Togliatti plant, located in central Russia. The automaker, like Renault, reported a persistent shortage of electronic components forcing it to suspend work. The automaker plans to resume operations on Tuesday.
Last Friday, Renault announced its strategic plan of creating separate divisions for ICEs and electric vehicles. It also reported an annual profit for the first time in three years. According to Citibank, Renault is one of the auto manufacturers exposed to Russia, a region where it makes 8% of its core returns.
Russia faces international sanctions that might affect the global supply of vital components needed in automotive manufacturing. The situation has also affected oil prices, which have hit an eight-year high this week.
Renault has a lot to fear since it controls one of the most popular automakers in Russia. Stellantis and VW group also have plants and factories in Kaluga City, where one can also find other large corporations, like Continental.
Renault said it would suspend some of its operations in the Eastern European country next week, after experiencing logistical issues leading to vital component shortages in its plants, Reuters reported. The French automaker operates three automotive assembly plants in Russia.
The announcement comes after the situation between Russia and its Ukraine neighbor countries escalated this week.
Avtovaz, Russia’s largest automaker, which is controlled by Renault, may also shut down operations in its Togliatti plant, located in central Russia. The automaker, like Renault, reported a persistent shortage of electronic components forcing it to suspend work. The automaker plans to resume operations on Tuesday.
Last Friday, Renault announced its strategic plan of creating separate divisions for ICEs and electric vehicles. It also reported an annual profit for the first time in three years. According to Citibank, Renault is one of the auto manufacturers exposed to Russia, a region where it makes 8% of its core returns.
Russia faces international sanctions that might affect the global supply of vital components needed in automotive manufacturing. The situation has also affected oil prices, which have hit an eight-year high this week.
Renault has a lot to fear since it controls one of the most popular automakers in Russia. Stellantis and VW group also have plants and factories in Kaluga City, where one can also find other large corporations, like Continental.
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