Factbox: What has become of Western carmakers' assets in Russia?

Baic Motor

20/07/2023 01:30

By Gleb Stolyarov and Alexander Marrow
       July 20 (Reuters) - The Western automakers that
dominated Russia's car market left following Moscow's invasion
of Ukraine, leaving a slumping production and sales in their
wake, with domestic producers and Chinese firms picking up the
pieces. 
    Here is an overview of the fate of foreign carmakers' assets
in Russia: 
   
    RENAULT  RENA.PA 
    One of the first Western carmakers to exit, France's Renault
in May 2022 sold its majority stake in carmaker Avtovaz and its
Moscow factory with annual capacity of 150,000 vehicles to the
Russian state, each for one rouble, sources told Reuters at the
time. The deal gave Renault a six-year buyback option on its
Avtovaz stake. 
    Moscow's mayor hailed November's production launch of the
Soviet-era Moskvich at the plant as a historic brand revival.
Two sources, who asked not to be identified as they are not
authorised to speak to the media, told Reuters the Moskvich 3
model is a JAC Sehol X4 assembled in Moscow using kits purchased
from a Chinese partner. 
    Moskvich told Reuters it works with a "foreign partner" but
did not confirm ties to JAC. It said it would start to build
more of the car locally later this year or in early 2024. 
    Russia's Central Automobile and Engine Research and
Development Institute (NAMI) - a state entity - acquired
Renault's Avtovaz stake.
    Avtovaz, Russia's leading carmaker, subsequently bought RN
Bank, a joint venture between Italian lender UniCredit and the
Renault-Nissan-Mitsubishi Alliance, for an undisclosed fee. 
    
    NISSAN  7201.T 
    NAMI purchased Nissan's Russian business for one euro in
October with a six-year buyback clause, which the Japanese
carmaker said cost it around $687 million. 
    That deal included Nissan's production and research
facilities in St Petersburg, with production of 100,000 units,
as well as its sales and marketing centre in Moscow. 
    The plant, now owned by Avtovaz, was renamed Lada St
Petersburg and produces Lada X-Cross 5s in cooperation with what
Avtovaz calls an "Eastern partner". 
    A source close to the company told Reuters that China's FAW
Group's Bestune T77 compact utility vehicle is being used to
produce Lada cars there. FAW did not respond to Reuters
questions. Avtovaz declined to provide further details. 
    Avtovaz has said publicly it plans to begin localising
production in 2024, using parts from suppliers in St Petersburg
and the Leningrad region. 
    
    BMW, HYUNDAI, KIA
    In Russia's Kaliningrad exclave on the Baltic coast, Chinese
Kaiyi cars are now being produced by carmaker Avtotor, which
previously assembled BMW  BMWG.DE , Hyundai  005380.KS  and Kia
 000270.KS  cars.
    Avtotor told Reuters it also has agreements to produce cars
for China's BAIC and Shineray Group at the plant, which
currently has capacity of 80,000 units.
    Avtotor said it is working with "partial localisation of
components" and plans to produce about 80,000 cars of the three
Chinese brands this year. It is preparing for full production
capacity in 2024. 
    Kaiyi, BAIC and SWM did not respond to requests for comment.
    
    VOLKSWAGEN  VOWG_p.DE 
    Germany's Volkswagen in May said it had sold its shares in
Volkswagen Group Rus to Art-Finance, which is supported by
autodealer group Avilon. The deal was worth 125 million euros 
($140.3 million), according to a source familiar with the
matter. 
    VW's former Kaluga factory, which has annual production
capacity of 225,000 vehicles, was renamed AGR Automotive by its
new owner. 
    Avilon is in negotiations about a partnership with Chery
automobile, the largest Chinese player in Russia, another source
said. Chery and AGR Automotive declined to comment.
    Deputy Prime Minister Denis Manturov said in June that VW
has no buyback option.
       
    MERCEDES-BENZ  MBGn.DE 
    Mercedes-Benz sold shares in its Russian subsidiaries to car
dealer chain Avtodom, including its factory with production
capacity of 25,000 units in the Moscow region. It has a six-year
buyback option, although the German carmaker has said it does
not expect to exercise that clause. 
    Avtodom told Reuters it is in talks with several partners
about assembling premium Chinese cars there. 
        
    TOYOTA  7203.T 
    Japan's Toyota transferred its vehicle production plant in
St Petersburg to NAMI in March. It is not yet clear which cars
will be produced there, but a state-owned manufacturer may
produce electric cars there, Russia's Industry and Trade
Ministry has said. 
    Industry and Trade Minister Denis Manturov said in June that
Toyota has no buyback option.    
    
    FORD
    Russian automaker Sollers in November said it was producing
its Atlant and Argo light commercial vehicles (LCVs) at a
factory in the Tatarstan region, where Ford Transit vans were
previously produced. The plant has capacity to produce 85,000
vehicles annually. 
    China's JAC Sunray model is being used in production, a
source told Reuters. Sollers declined to comment. 
($1 = 0.8911 euros)

 (Reporting by Gleb Stolyarov; additional reporting by Zhang Yan
in Shanghai; Writing by Alexander Marrow; Editing by Daniel
Flynn)
 ((alexander.marrow@thomsonreuters.com;))