Home News The world’s fourth-largest carmaker is suspending production at its Russian plant

The world’s fourth-largest carmaker is suspending production at its Russian plant


The carmaker Stellantis, which produced and sold the Peugeot, Citroën, Opel, Jeep and Fiat brands in Russia, owns only 1% of the car market in that country. It has a van production plant in Kaluga, about 201 kilometers southeast of Moscow, owned jointly with Japanese carmaker Mitsubishi, which stopped production there earlier this month.

“Due to the rapid daily growth of cross-sanctions and logistical difficulties, Stellantis has suspended its production operations in Kaluga to ensure full compliance with all cross-sanctions and to protect its employees,” Stellantis said in a statement. .

The factory has 2,700 employees. The company will continue to pay salaries through a local break scheme and using early holiday periods, Stellantis told Reuters.

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Stellantis does not know how long the stop will last, adding that his priority is staff and the return of peace. The group had already suspended all vehicle exports and imports with Russia following Russia’s invasion of Ukraine, moving production to Western Europe.

The carmaker also said it was freezing plans for more investment in the country.

The production of vans in Kaluga remained only for the local market.

Dozens of foreign companies have announced the temporary closure of Russian shops and factories or said they are leaving the country permanently since Russia began what it called a “special military operation” in Ukraine on February 24th.

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Stellantis CEO Carlos Tavares said in late March that the group would have to close the Kaluga plant soon because it ran out of parts.

Separately on Tuesday, General Motors said it was prolonging its suspension in Russia due to the conflict and international sanctions. The US carmaker, which initially suspended imports into Russia and trade on February 28, said it was laying off most of its 66 employees and providing them with separation packages. GM has no factories in Russia and only sold about 3,000 vehicles a year before the suspension.

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