-Renault - is leaving, the Moskvitch is back in Moscow

[Benedikt]

https://kurier.at/wirtschaft/nach-re...-ein/402009309

Renault is selling for 1 ( one) Ruble ,city of Moscow is buying. and our good Mayor Sobyanin explained - cant leave the workforce out in the cold-. He promised and wants to keep - most - of the workforce...
So that -iconic- car mentioned will be produced once more on the factories lines. Kamas is also in.
And a technologie company...(NAMI)
Wonder though what the new car will look like? hopefully NOT like the old, original one?
( the article is in original german language, from the Austrian Kurier)

[BigBear]

The headline of the BBC article on this screamed “Ukraine war: Russia nationalises Renault’s Moscow plant” before clarifying that “ Renault has announced it is selling its majority stake in Russian carmaker Avtovaz, following pressure over its continued presence in the country.” They are really working hard to push the narrative of the UK and other governments that Russia is to blame for everything.

[Benedikt]

The headline of the BBC article on this screamed “Ukraine war: Russia nationalises Renault’s Moscow plant” before clarifying that “ Renault has announced it is selling its majority stake in Russian carmaker Avtovaz, following pressure over its continued presence in the country.” They are really working hard to push the narrative of the UK and other governments that Russia is to blame for everything.

and it is nearly correct.By the way with KAMAZ on board, MERCEDES BENZ is also in on the deal. because the Germans are in with Kamaz... Whatever part, big or small they have there. Renault is selling for 1 Ruble to Moscow... And Avtovaz has the option to buy back the share of Renault within 6 month. Sobyanin will keep the plant going. Because it is good for Moscow.And of course there will be sure a few thousand votes for his next elections. whatever that will be. mayor of Moscow.governator of the whole place M and MO. Or -big shot- in the Kremlin...

[xt-tsi]

I think the option is to buy back in a six years.

Since Renault (half way) pulled out, Avtovaz has been scrambling to find ways to make cars in Russia without parts that in future can't be imported. The solution is to produce Lada Granta, Lada Largus and Niva Legend with manual transmission only and without ABS (anti-lock braking systems), ESP (electronic stability programs) and airbags. Basically, a stripped down version. Some Renault models made in Russia (maybe all?) will be replaced with these Russian car models. I haven't been able to find out if the engines and transmissions will be supplied by Renault but I would bet good money they will be. However, this part of the picture is not being reported, who produces the engines and where? Now Renault can claim they left the Russian market cleanly for their political reasons. and the Russians continue their partnership, indirectly, with Renault. Renault is writing off 2.3 billion USD for its Russia business but recently sold 34% of its Korean unit to Geely for $264 billion. This allows Geely and Renault to export to the US, something Geely can't do from China without paying higher duties than the Korean and Japanese producers. The write-off comes in handy for tax purposes, Renault continues selling components to Russia, Avtovaz share could grow with its low cost, stripped down cars. Renault and Geely are developing cars for the US market that I bet will be positioned as Korean, more acceptable to American consumers than Chinese branding.

Renault Mcdonalds are two examples of western assets in Russia being sold, presumably at rock bottom prices, instead of being nationalized. This leaves open the possibility of these companies coming back someday. Cooler heads in Russia and among western companies are starting to prevail.

Google's Russia business has discovered another tactic - declaring bankruptcy. I bet they stopped operations, causing their revenue streams to plummet, resulting in bankruptcy and as a result, there is nothing to acquire. Meanwhile, all other Google services will continue to operate. They too have left the market without leaving it but have avoided either nationalization or an acquisition.

Another example is Paulig's Russia assets that were sold to a guy named Vikas Soi who owns a small coffee brand called Milagro. The deal is being blocked by the Russian government, based on the claim that if Milagro, with much less than 1% of the coffee market, buys Paulig whose coffee share is about 5% of the total market, a coffee monopoly will be establish. This odd claim is, I think, something like a warning. The Russian government clearly wants assets of non-friendly companies who've left the market to go to entities approved by, or are part of, the Russian government. By limiting outsiders to invest, the price is driven down, backed by the threat of nationalization. Vikas might be f-d unless he has a very strong partner behind him but I think he has backing. Let's see.

[Benedikt]

Let's see...

one thing is for sure. NOTHING is as it seems. that is for sure.

[Alan65]

Let's see...

one thing is for sure. NOTHING is as it seems. that is for sure.

How does this all work with IPR

[xt-tsi]

How does this all work with IPR

So far, no moves have been made (as far as I can tell) to remove IPR. McDonalds and (it looks like) Renault brands will be replaced by local ones. Makes sense. Why promote someone else's brand when you can develop your own one. Otherwise, a fast food chain using McDonalds' branding without permission can't be sold whereas the business being developed by Gromov can.

You saw that some branded goods can be parallel imported into Russia, mostly electronics, also some consumer goods. No alcohol or food. But this doesn't effect IPR.

Like I say, cooler heads. Folks are looking ahead on both sides to the day when things simmer down. Nothing lasts forever.

[BigBear]

Another example is Paulig's Russia assets that were sold to a guy named Vikas Soi who owns a small coffee brand called Milagro. The deal is being blocked by the Russian government, based on the claim that if Milagro, with much less than 1% of the coffee market, buys Paulig whose coffee share is about 5% of the total market, a coffee monopoly will be establish. This odd claim is, I think, something like a warning. The Russian government clearly wants assets of non-friendly companies who've left the market to go to entities approved by, or are part of, the Russian government. By limiting outsiders to invest, the price is driven down, backed by the threat of nationalization. Vikas might be f-d unless he has a very strong partner behind him but I think he has backing. Let's see.

My wife says she read a report that Paulig had sold everything EXCEPT the exact composition of their coffees. Which is a bit of shame (for me at least) since I have grown quite partial to Paulig's Classic blend since we've been living here.

[xt-tsi]

My wife says she read a report that Paulig had sold everything EXCEPT the exact composition of their coffees. Which is a bit of shame (for me at least) since I have grown quite partial to Paulig's Classic blend since we've been living here.

Yeah, they have some good blends. Their Presidentii blend is a nice one as well. Making the same blends isn't rocket science. The new owners could simply match Paulig's blends and carry on roasting them. This is done all the time...Pauligs blends have been copied many times by other roasters in Russia. The main thing is that whoever buys Paulig's roasting facility in Russia brings in a top roasting master and Q grader. They could hire the staff who worked for Paulig in the past to do it.

Paulig supplied McDonald's with coffee. Hopefully the roasting facility can be up and running to resume it. I wasn't a fan of the food at McDonalds but did buy their coffee to drink in the car.

[Benedikt]

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Paulig supplied McDonald's with coffee. Hopefully the roasting facility can be up and running to resume it. I wasn't a fan of the food at McDonalds but did buy their coffee to drink in the car.

i have not eaten in McD in years. does not appeal to me.BUT i liked their Mcafee. And for the same reason that you mentioned, their coffee. always ordered the Viennese Coffee in the big glas .and lots of whipped cream on top.. and the toasted ciabatta with ham or tuna...