Cyprus Mail

Stellantis suspends vehicle production in Russia

stellantis peugeot electric vehicle ev car charging

Carmaker Stellantis (STLA.MI) said on Tuesday it was suspending production at its Russian plant due to logistical difficulties and sanctions imposed on Moscow.

The world’s fourth-largest automaker, which produced and sold the Peugeot, Citroёn, Opel, Jeep, and Fiat brands in Russia, has just 1 per cent of the country’s car market.

It runs a van-making plant in Kaluga, around 125 miles (201 kilometres) south-east of Moscow, co-owned with Japanese carmaker Mitsubishi (7211.T), which halted production at the facility earlier this month.

“Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its employees,” Stellantis said in a statement.

Stellantis had already suspended all exports and imports of vehicles with Russia, following Moscow’s invasion of Ukraine, moving production to western Europe. It had also said it was freezing plans for more investments in the country. Van production in Kaluga had remained just for the local market.

Scores of foreign companies have announced temporary shutdowns of stores and factories in Russia or said they were leaving the country for good since Russia began what it calls “a special military operation” in Ukraine on Feb. 24.

Stellantis Chief Executive Carlos Tavares said in late March the group would have to close the Kaluga plant shortly as it was running out of parts.

Follow the Cyprus Mail on Google News

Related Posts

As wealth inequality rises in Cyprus both people and democracy suffer

Les Manison

Cyprus Business Now: weekly wrap-up

Souzana Psara

EU demands clarity from Microsoft on AI risks in Bing

Reuters News Service

Sony shares leap 12 per cent on buyback and dividend plans, higher profit outlook

Reuters News Service

Amazon Web Services plans $8.4 bln cloud investment in Germany

Reuters News Service

Putin ally says EU is hypocritical for ban on Russian media