Due to the problems of sanctions and production chains, only four of Russia’s more than twenty car factories are still operating.
There are plans to make Moskvich cars again in Russia. The mayor of Moscow announced his intentions Sergei Sobyanin on Monday.
According to Sobjanin, cars of the Moskvich brand, known from the Soviet era, will be manufactured at the Moscow plant of the French carmaker Renault, which is about to be taken over by the city of Moscow.
Renault’s business in Russia is being practically nationalized. It has been forced to sell its Russian subsidiary to the city of Moscow and its majority stake in Avtovaz, a company that makes Lados, among others.
Both are paid a symbolic compensation of one ruble, according to news agency Reuters. Renault has the option to repurchase its stake within six years if the international situation changes.
Even before the Russian invasion, Renault was one of Russia’s leading carmakers. The company announced in March that it was withdrawing from Russia because of the war.
Renault is the first major Western company to nationalize Russia.
Car factories are not working because of sanctions
Moskvich, or in Moscow, a Muscovite, was one of the most famous car brands in the Soviet Union, along with Lada. It became the first Soviet car to be imported to Finland in the 1940s.
It is unclear how realistic the plans for Moscow’s return are. The intention would obviously be to design completely new car models.
According to Sobjanin, the factory’s partner would be the Russian truck manufacturer Kamaz. The company itself, on the other hand, said it would support Sobjanin’s initiative but the partnership is still being negotiated.
It will take at least a billion dollars to get a new car into production and it will take at least two years, according to Reuters, the director of the consulting company Autostat Sergei Tselikov.
At the same time, sanctions imposed on Russia and supply chain problems have led to huge problems for the Russian car industry. A significant part of the car parts produced have been imported to Russia from abroad.
Western, Japanese and Korean automakers are largely withdrawing from the country. Several companies have stopped selling cars and their parts to Russia.
Airbags and emission limits will be abandoned
If new Muscovites do ever come into production, they may be surprisingly reminiscent of the original Mosques, which were discontinued in 2002.
Emission limits for new cars will also be lifted. The provisional regulations are currently in force until the end of this year.
The reason for the new regulations is that safety devices and emission control systems are not available in Russia due to sanctions.