Oh yes, everybody in eastern Europe remembers those miracles of engineering.
That’s one big stupid move. LOL
Nice job. No sane person or company would invest in the next 100 years there.
and what they will build? knock-off renaults?
It’s not as if Western governments were going to allow investment into Putins Russia anyways. Also you have to remember that these manufacturing plants hire thousands of Russians, so what the government going to do? Let the plant sit derelict whilst the workers are unemployed? May as well just re-employ them and get them to build something.
There was a joke in East Germany that the Moskvitch would be renamed to the Luther, because Martin Luther was famous for saying “Here I stand. I can do no other.”
~~The headline is flawed as this is what the actual article states:~~
~~”~~*~~In a statement carried by Reuters, Renault described the~~* ***~~sale of its majority stake in Avtovaz to NAMI and 100% shares in Renault Russia~~*** *~~to the city of Moscow as a “responsible choice.””~~*
~~If it is selling of stake, then it is not typical nationalization as that most of the time refers to situations where no compensation is given to the party that loses the assets.~~
EDIT: Ah, I have been informed by u/Ythio that the “compensation” is 1 ruble. Yes, this is a nationalization. My mistake.
Fascism characteristic checklist
* Nationalization of foreign companies – check
It’s not a nationalization. They actually sold the plant with a 6-year long buyback option.
Adam Smith cries over Russian economic history
LMAO! they are doomed. Russians keep their jobs but what’s the profit margin? Who’s gonna buy the product? how are they gonna make components? and most importantly who is gonna finance it all and with whose money? RIP Russian Industry.
Good lesson for any company that want to invest in autocratic country…..
You can invest, but do not cry later than dictator will simple take your factory for himself.
13 comments
The 2050 Moskvitch, will be a 2022 Renault SUV.
Oh yes, everybody in eastern Europe remembers those miracles of engineering.
That’s one big stupid move. LOL
Nice job. No sane person or company would invest in the next 100 years there.
and what they will build? knock-off renaults?
It’s not as if Western governments were going to allow investment into Putins Russia anyways. Also you have to remember that these manufacturing plants hire thousands of Russians, so what the government going to do? Let the plant sit derelict whilst the workers are unemployed? May as well just re-employ them and get them to build something.
There was a joke in East Germany that the Moskvitch would be renamed to the Luther, because Martin Luther was famous for saying “Here I stand. I can do no other.”
~~The headline is flawed as this is what the actual article states:~~
~~”~~*~~In a statement carried by Reuters, Renault described the~~* ***~~sale of its majority stake in Avtovaz to NAMI and 100% shares in Renault Russia~~*** *~~to the city of Moscow as a “responsible choice.””~~*
~~If it is selling of stake, then it is not typical nationalization as that most of the time refers to situations where no compensation is given to the party that loses the assets.~~
EDIT: Ah, I have been informed by u/Ythio that the “compensation” is 1 ruble. Yes, this is a nationalization. My mistake.
Fascism characteristic checklist
* Nationalization of foreign companies – check
It’s not a nationalization. They actually sold the plant with a 6-year long buyback option.
Adam Smith cries over Russian economic history
LMAO! they are doomed. Russians keep their jobs but what’s the profit margin? Who’s gonna buy the product? how are they gonna make components? and most importantly who is gonna finance it all and with whose money? RIP Russian Industry.
Good lesson for any company that want to invest in autocratic country…..
You can invest, but do not cry later than dictator will simple take your factory for himself.