Iconic Soviet car brand making a comeback

Production of an updated version of the iconic Soviet-era Moskvich brand of cars is set to be revived at a former Renault plant in the Russian capital, Moscow Mayor Sergei Sobyanin has announced in an interview with RIA Novosti.

“As early as next week it [the Moskvich plant] will start its first assembly. And next year, hopefully, it will reach work volumes comparable to the period when Renault was here,” Sobyanin stated.

The factory in Moscow, which was established in 1930, was the original producer of Moskvich cars back in Soviet times. In the early 2000s, the plant was bought by Renault and the Moskvich line was discontinued. However, this past May the French automaker handed the plant over to the Moscow authorities amid the company’s exit from Russia due to sanctions. Shortly thereafter, the plant’s name was changed back to Moskvich.

According to the company’s plans, the plant will produce “state-of-the-art” car models, including a sedan and four crossovers. Production of electric cars at the plant is also on the agenda and may start in two to three years.

According to Sobyanin, the city has successfully adapted to Western sanctions, as many of the niches vacated by foreign investors over the past months have been filled by Russian entrepreneurs.

“The vast majority of our enterprises have adapted to the situation. Moreover, the profitability of these enterprises is gradually recovering, including in the financial sector, where the collapse of profits was most evident. That is why we, from the point of view of the budget, feel quite confident,” he stated.

He noted, however, that car production has been lagging behind as many manufacturers decided to end their operations in the country this year. This is why the Moscow authorities are placing high hopes on the Moskvich plant. In late October, Sobyanin said he expects Moscow to become the center for automobile manufacturing in Russia, and that the city has all the capabilities to do this.

For more stories on economy & finance visit RT's business section