Russian car dealers want Renault to redeem 8.5 bln rbl of losses

MOSCOW, May 11 (PRIME) -- Russian car dealers have requested that French car giant Renault sign an agreement ton compensate 8.5 billion rubles of losses that Renault’s withdrawal from the country caused, Alexei Podshchekoldin, president of the Russian Automobile Dealers Association, told PRIME on Thursday.

“On May 2, 2023, a group of Russian Renault dealers of sent a letter to Renault France addressed to Renault President Jean-Dominique Senard with a proposal to sign an agreement to compensate 8.5 billion rubles of losses to the Russian dealers they suffered following the withdrawal of the Renault brand from the Russian market,” he said.

He added that it was a second attempt to reach a compensation deal out of court.

A spokesperson for the association said that the sum includes spending on property and rent for the dealerships, the cost of internal and external reconstruction in compliance with the Renault standards, procurements, staff training, loans taken out for development of the Renault dealership chain, and lost profit.

Dealers think this agreement is the best compromise taking into account loyalty to the Renault brand in Russia and many years of successful cooperation. If the agreement is not reached, the dealers will file a suit to the Russian court, causing reputational losses for Renault and making its possible return to Russia more difficult, the spokesperson said.

(76.6929 rubles – U.S. $1)

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