Renault is offloading Russian carmaker Lada for a meagre half-a-cent as the Russia/Ukraine war rages on.
Renault owns a 68 per cent stake in Lada, a prominent manufacturer in Russia. However, the war between the two neighbours has had dire consequences on Renault, both from a market perspective and supply-wise.
Thus, Renault is reportedly set to sell off its stake in Lada for the price of one Russian Ruble, or $0.022 New Zealand dollars.
Picking up the pieces is a Russian state institute that specialises in the automotive industry.
If the war ends and Lada’s market value begins to improve, Renault will have the opportunity to buy back its stake for the corrected price.
A Renault-owned factory in Moscow will become the property of the city Government and used to continue making Lada cars.
Lada has a 21 per cent market share in the Russian car world, with the Vesta and Granta models being the most sold passenger vehicles of 2021.
Interestingly (but not very relevant), Lada’s were initially part of Russia’s barter to receive New Zealand-made butter and dairy products.
And now you know something new…