After a two-decade hiatus, Russia on Wednesday restarted production of the Soviet-era brand Moskvich at a factory near Moscow abandoned by French automaker Renault, Russia’s Industry and Trade Ministry said.
Renault sold its controlling stake in automaker Avtovaz in May to the Russian state for just one rouble but with a six-year buyout option. She sold her factory, now renamed Moscow Automobile Factory Moskvich, for another ruble.
The ultimate goal of producing 100,000 Moskvich vehicles a year, some of which will be electric, is well below the industry average for a 200,000 to 300,000 auto plant. Tesla makes 22,000 cars a week at its factory in Shanghai.
“The first Moskvich cars will roll off the production line in December 2022,” truckmaker Kamaz, the plant’s technology partner, said in a statement.
The resurrected Moskvich (“Muscovite”) might return with a twist. Sources told Reuters that Chinese automaker JAC’s design, engineering and production platform would be used to produce the brand.
Western sanctions over Moscow’s military campaign in Ukraine have severely hampered access to foreign-made components, while many foreign automakers have left. Kamaz and the government established new supply chains but did not disclose details.
“The task shortly is to establish processes for assembling small nodes with the participation of local suppliers by the end of 2023,” Industry and Trade Minister Denis Manturov said in a statement. a statement.
The ministry said the launch of large-scale production would create jobs for around 40,000 additional people.
The ministry said that sales of the Moskvich 3, described as an urban crossover with a gasoline engine and an automatic or manual gearbox, will begin in December.