Stellantis Idles One of Russia’s Last Working Auto Plants
Stellantis Suspends Production at Plant Near Moscow on War
(Bloomberg) -- Stellantis NV is halting output at its van factory near Moscow, joining a long list of industrial companies stopping production in Russia over the war in Ukraine.
“Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance,” the maker of Jeep, Peugeot and Fiat vehicles said in a statement.
Idling the site, which has been operating at a low level for weeks as parts supplies dried up, halts one of the last functioning automotive factories in the country. Stellantis last month halted exports and imports of cars to and from Russia, but made no mention of the plant churning out some 11,000 commercial vehicles a year.
The war has spurred an exodus of international companies from the Russian market, with German chemical and consumer goods maker Henkel AG joining the withdrawal Tuesday. Both companies say they will continue to pay workers the country.
Russia’s offensive in Ukraine has stymied manufacturing back home because the growing list of global sanctions is making it more difficult to source key components. Volkswagen AG, BMW AG and Ford Motor Co. are among the global carmakers that have suspended operations at factories in the country.
A venture majority owned by the global automaker most exposed to Russia has left open the possibility of reviving operations in the short term. Renault SA’s AvtoVaz, which makes Lada vehicles, has said it’s planning to restart production after workers return from an extended vacation ending April 24.
Stellantis’s move to suspend output was a matter of time after its partner at the Kaluga plant, Mitsubishi Motors Corp., said earlier this month it’s suspending its operations at the site “until further notice,” due to logistical difficulties.
Stellantis Chief Executive Officer Carlos Tavares has said Russia accounts for between 20 million ($22 million) and 30 million euros of profit annually, a negligible amount for the automaker.
©2022 Bloomberg L.P.