Car world reacts to Russia’s actions

With the recent conflict worsening in Ukraine and with many countries imposing sanctions and restriction to Russia, different automobile manufacturers have made a different response to the situation.

Here’s my list with the information i could gather.

• Renault-Nissan

BBC have said in a report that the alliance which includes AutoVAZ, a Russian car brand. That they have had an chat with Carlos Ghosn, Renault-Nissan-Mitsubishi’s CEO. He stated that “some models” are being suspended, mainly the ones which uses many imported parts. Other models should be available and existing orders will be fulfilled. Renault-Nissan-AutoVAZ currently operates 3 plants in Russia,  Togliatti, St. Petersburg and Togliatti. Part shortages in the country have slowed down the production of these plants due to part shortages.

• VW Group

The VW Group owns one plant in Ukraine and two in Russia, and they have said that they will stop production in both Russia plants and also all imports to the country, they confirmed it in a Twitter post and this includes Skoda’s business in Russia. No words about the plant in Ukraine but it is assumed that they cannot proceed under the worsening situation. They have also said that the production in 2 of their plants in Germany may suffer supply restraints and possibly cutting down on production.

• Ford

Ford does own a plant in Russia, located also in St. Petersburg. The plant only produces commercial vehicles in a small capacity and it’s shared 50-50 between Ford and Solles, a Russian automotive firm with UAZ under it’s umbrella. In a statement, Ford have said that they will be stopping all operations in the country.

• Hyundai-Kia

Hyundai only operates one manufacturing center in Russia, and according to the WSJ, the Korean firm will be stopping production in it’s plant in St. Petersburg, but they said that it was caused by parts shortages and will continue next week.

• Toyota

Toyota owns one manufacturing plant in St. Petersburg, and today they have announced that they will not only cease operation in the factory, but will be closing 168 outlets. Together with 37 more in Ukraine.

• Honda

Honda only operates in a small capacity in Russia, importing only around 3,000 vehicles each year and that is including their motorbikes. Nikkei Asia have said that Honda will be stopping imports in the country.

• Mazda

In the same Nikkei report, they have said that Mazda will also be stopping imports to Russia. But one join plant in Russia which only produces semi knock down cars, will most likely continue production if it has enough inventory to keep going.

• Mitsubishi Motors

Mitsubishi motors operates one plant in Kaluga city, which currently assembles the Pajero Sport, and the Outlander. Reuters said that Mitsubishi may suspend both production and sales due to sanctions.

• Mercedes Benz and Daimler Trucks

Mercedes-Benz have said in a Twitter post that they will be ceasing import and productions in Russia, for both cars and vans. Daimler Trucks have also said that they will be stopping productions of their Trucks at the joint Naberezhnye Chelny plant with Kamaz.

• BMW

BMW currently assemble Semi Knock Down cars in a shared factory in Kaliningrad with Russian car maker Avotor. On an interview with Reuters, BMW stated that they will be ceasing productions and imports in the country.

• General Motors

General Motors does not own any production facilities in Russia, but they said in a statement with Reuters that they will be shutting down imports to the country.

• Volvo Cars

In the same Reuters release, the Swedish automobile manufacturer have also stopped import to the country, as they do not operate production facilities.

• Stellantis

Formerlly called FCA, the multinational automotive corporation operates in Russia under the PCMA alliance, with Peugeot and Citroen assembling cars in the same Kaluga plant with Mitsubishi. Stellantis’s CEO have said in a statement that sanctions in the country may affect their operations and they are willingly compliant with any actions they should follow, and they are monitoring the situation very closely.

• Jaguar Land Rover, and Aston Martin

The three British automotive brands said to Reuters that they will be pausing deliveries to the Russian Federation.

• Volvo Trucks

Unlike Volvo cars, Volvo trucks does have a manufacturing plant in Russia, the factory produces up to 30,000 trucks a year with models such as the FH, FM, and the FMX. They have also ceased operations in Russia.

• Scania

Scania, being part of VW’s group have stopped all imports of trucks and spare parts, according to fullyloaded.com with Scania’s spokes person quoted saying “Relations with clients are important for Scania but the values of Scania were more important in this regard.”

Aviation

Boeing: According to BBC, Boeing have suspened “major operations” in Moscow, and have closed it’s office in Ukraine. They have also stopped supplying support for Russian airlines, which includes parts, and technical support.

Airbus: On the same BBC report, airbus had also stated that they will be stopping services for Russian airlines and stop supplying parts for the country.

Bombardier: Canadian luxury jet manufacturer Bombardier have stated that they will be “monitoring” the situation in Ukraine and will be cancelling orders from sanctioned Russian individuals. They said that 5%-6% of their orders come from the region.

General Electric: General electric have also announced that they will be pausing some of their support to airlines in Russia, they did not specify what type of actions they have taken but they said that they will continue operations according to international law and regulations.

 

Other related companies/entities ceasing production/activity or any kind of restricting actions includes:

 

Harley Davidson stops export to Russia.

British Petroleum exits stakeholding in Rosneft, 19.75%.

Shell ceasing all operations, abandoning all assets and ends partnership with Gazprom.

Equinor ends ventures in Russia.

ExxonMobil to ceases operation and exist Russia.

Total Energies will no longer provide funding for it’s venture in Russia.

I am no expert in politics and I do not want to tear apart our beloved community, but I think it’s in the best interest of the world that the killing of innocent lives should be stopped, and I hope for safety for everyone affected by the conflict.

On the automotive side of things, it’s unfortunate that the situation happening in Ukraine may well affect the supply chain which is already on it’s backfoot after the chip crisis

I hope for the situation to resolve as fast as possible with the best outcome for the lives of the people.