Russia is about to re-produce cars from the Soviet era
Production of cars under the Moskvich brand will begin in December, Moscow mayor Sergei Sobyanin said on October 20.
Six months after the French automaker Renault pulled out of Russia , the Soviet-era car brand is about to go into production at the factory that Renault has transferred. "We cannot let thousands of workers lose their jobs. This year we will open a new page in history for Moskvich," Moscow mayor Sergei Sobyanin said in May.
When handing over the assets, Renault sold a majority stake in Avtovaz to the Russian government for what is believed to be just one ruble (about $0.016). But the French firm can buy it back within the next six years.
Some of Moskvich's models date back to the Soviet era. Photo: Artem Svetlov
Another similar transfer took place right in October, with Nissan selling its business for 1 euro (nearly $1) to the Moscow-based Central Institute for Research and Development of Engines and Automobiles, the agency agency of the Russian Government. And Nissan could also acquire the company and its businesses within the next six years, just like Renault.
"The auto industry has suffered a serious decline this year. However, I hope we can put the Moskvich plant into operation in December with the support from the Ministry of Industry and Trade," Interfax quoted Sobyanin as saying. .
The Moskvich car brand stopped production two decades ago. The upcoming plant can produce about 600 vehicles this year, 200 of which are electric. In 2023, production in 2023 is expected to be 50,000 vehicles.
Sobyanin also said that Moscow has enough expertise to become a center of the electric vehicle industry. The city mayor's office as well as Russia's largest truck company, Kamaz, reached an agreement in August to invest 5 billion rubles ($81.4 million) in the Moskvich plant.
Kamaz is looking for a foreign partner to produce cars in Moscow. Sources say that Kamaz may join hands with JAC Motors (China) to use the production platform, technology and design from this partner.
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