(Bloomberg) — Shares of Renault SA, the European carmaker most exposed to Russia, tumbled to their lowest close since November 2020 as countries around the world escalate measures to penalize President Vladimir Putin for invading Ukraine.
The manufacturer’s shares fell 11% in Paris trading Tuesday, dropping its market valuation to less than 7.5 billion euros for the first time in almost 16 months. The stock has plummeted 37% since Feb. 16.
Russia is Renault’s second-biggest market, with the automaker generating about 5 billion euros annually, roughly 12% of its automotive revenue, according to Bloomberg Intelligence. BMW AG, Mercedes-Benz Group AG and Volkswagen AG only have about 2% of their sales at risk, BI analyst Michael Dean said in a note last week.
The U.S., U.K., European Union and Asian nations have ramped up sanctions against Russia, contributing to a record plunge for the ruble. VW’s Russia unit has temporarily suspended deliveries of vehicles to dealers until further notice, while Daimler Truck Holding AG halted operations and may review ties with local joint venture partner Kamaz PJSC.
Renault’s Avtovaz venture restarted assembly lines Tuesday at its plant in Togliatti following a brief shutdown due to a shortage of semiconductors, according to a spokesman. The French company’s own plant in Moscow remains idle until March 5 due to supply issues.
A Renault spokesman declined to comment on how sanctions will affect operations.
Russia’s war in Ukraine also is leading to ripple effects elsewhere in Europe. VW will idle some production lines in Wolfsburg — the world’s largest car plant — next week before a broader shutdown the following week. BMW also expects imminent manufacturing halts and is finalizing plans for various locations, a spokesperson said.
(Updates with closing share price in the second paragraph.)
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