Tag Archives: EU

News

Renault sold its stake in AvtoVAZ for 1 cent

After Russia invaded Ukraine, the European Union imposed sanctions, forcing many carmakers to halt production in Russia. One of them was Renault, which even considered restarting production a month later, but backed out. It controlled 30 percent of the entire Russian car market, and now it has been announced that the French manufacturer has sold its share in AvtoVAZ (68%) to the Russian automotive research center NAMI for 1 ruble (1 cent).

It is obvious that Renault has no intention of returning to Russia, and if it were to decide to do so, it would cost them a lot. According to NAMI CEO Maxim Sokolov, the company has invested a lot in AvtoVAZ, so if Renault were to decide to return, it would cost them 112.5 billion rubles ($1.3 billion).

According to Sokolov, Renault invested between $226 and $249 million in AvtoVAZ before withdrawing from Russia, so he believes it would be right for the French to compensate NAMI if they return.

In an interview with TASS, he also said that in 2023, AvtoVAZ NAMI had invested about $311 million. Last year, they invested almost $453 million, and this year they plan to invest another $510 million.

Current relations between Russia and the EU do not indicate that there could be a relaxation soon, so it is difficult to expect that European manufacturers could return to the Russian market in the near future.

Source: TASS

News

Volvo supports a ban on ICE cars after 2035

Although many European car manufacturers have abandoned the plan to become fully electric by 2030, and put their focus on hybrids, they still believe in the EU’s plans. One of them is Volvo, which believes that the EU must not abandon the ban on the sale of ICE cars after 2035.

At the beginning of 2021, Volvo announced that it is rapidly moving towards the complete electrification of its fleet by the end of the decade. However, production problems and a drop in demand for EVs showed that everything was too fast. This forced Volvo to change its plan and face reality.

The Swedish company has announced that it will continue to produce cars with internal combustion engines after 2030, but they will have mild hybrid systems and will be produced in limited series. Also, the plan is for PHEVs and electric cars to account for between 50 and 60 percent of total sales by the end of this year. This target is too ambitious if we consider the sales of the last few months when fully electric cars accounted for only 26 percent of the total sales.

Volvo and 49 other car companies have signed a declaration with which they unreservedly support the European Union’s plan to ban the sale of cars with internal combustion engines, which should enter into force from 2035.

Some car companies disagree with the Swedish manufacturer. Similar opinion is shared by officials in several European Union countries who consider the plan absurd and unsustainable. The goal of the European Union is cars without harmful emissions, but not at any cost. In theory, this leaves room for internal combustion engines that would use synthetic fuel or hydrogen.

Source: Euronews

News

MG Motor will export EVs from Thailand to the EU

After the EU imposed additional tariffs on electric cars made in China, companies are trying to circumvent this regulation in various ways. Some have already started the production of their cars on European soil, and some are finding other solutions. Chinese-owned company, MG Motor, announced that it is considering sending its electric cars from Thailand to Europe.

Shipping a car from Thailand to Europe is not an easy task. Considering that Thailand does not currently export cars to the European market, this means that MG would also have to pay 10 to 20 percent customs duty in order to import its cars produced in a Thai factory to Europe. Therefore, Thailand and the EU have started negotiations on free trade, an agreement should be reached by the end of the year, which would open the door to the EU market for electric car manufacturers from Thailand. However, even if this plan succeeds, it will only benefit the MG4, which is MG’s best-selling car in Europe. The brand’s other electric cars are made in China and would not be covered by the deal. Also, MG has been thinking about building a factory on European soil since last summer.

SAIC manager Suroj Sangsnit said technology sharing rules and high tariffs are forcing Chinese brands to manufacture their cars in other countries. This could be a big opportunity for Thailand, as the country is producing more and more electric cars, and Europe could become a new market if a deal is reached.

Under current regulations, MG would have to pay a 46.3 percent duty if it imported cars from China to Europe. This would make their cars uncompetitive on the European market.

Source: Reuters