Nearly half a year after the announcement of the building of a new Dacia plant in Morocco, a 1 billion-euro investment, Renault is negotiating an increase in its stake in AvtoVaz, the biggest Russian carmaker, to over 50%, which means Lada will become the new Dacia, but at a much larger scale. What impact does this move have on Renault’s business in Romania?
The increase in Renault’s stake in AvtoVaz, the biggest Russian carmaker, which assembles cars under the Lada brand, Dacia’s equivalent in the Soviet Union, could lead to diminished exports from the Mioveni plant in Romania to the Renault plant near Moscow.
This year the Mioveni plant will export 80,000 CKDs (complete knockdown kits) to Russia, which are assembled in the Avtoframos plant, held by Renault (95%, with Sandero and Logan models already leaving the gates of the plant, and Duster to be assembled there next year.
If Renault becomes a majority shareholder at AvtoVaz, it will seek to reach a high degree of local integration for both plants, as it has done in Romania, so CKD kits will be significantly less used, and replaced by parts manufactured in Russia.

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