If there’s a reason “incomprehensible” has the same meaning in both English and French, this must be it.
The initial decision to restart AvtoVAZ may involve more than simple economics; the Russian subsidiary sold 350,000 vehicles in 2021, earning about $205 million and accounting for roughly 12 percent of Renault’s earnings last year. Perhaps the company feared that AvtoVAZ could be nationalized, wiping out Renault’s controlling interest, by Russian President Vladimir Putin if it did not turn its assembly lines in Moscow back on and put its 40,000 employees in Russia back to work.
The decision looks worse when contrasted with the stories that have emerged from Ukraine. Even as Ukrainians were taking up arms to defend themselves under withering attacks, remarkably, they were also continuing to produce wire harnesses needed to keep European auto factories running. For its part, Volkswagen Group vowed to continue supporting its Ukrainian suppliers in appreciation — or perhaps awe — of such bravery and dedication.
Automakers have been sucked into geopolitical conflicts for as long as this industry has existed, often to ill effect, and a globalized industry is bound to have assets scattered wherever people are. Yet it is incumbent on automaker executives to be mindful of the value of human life, to promote peace and prosperity for all of the world’s inhabitants, and to place those concerns above short-term economics.
We’re glad Renault reconsidered and did the right thing. In the end, this episode should help show that the industry — eventually — won’t pander to a violent dictator.
