Stellantis Latest Brand To Halt Russia Operations

Mon 25th Apr 2022

One of the world’s biggest car manufacturers has joined a long list of brands to cease their operations in Russia.

Stellantis, the fourth-biggest car producer on the planet, responsible for brands such as Peugeot, Fiat, Renault, Vauxhall and Jeep, has suspended manufacturing at its factory near Moscow as global sanctions have hit the supply chain.

The company sells a range of models and marques into Russia, however it only claims a one-per cent share of the market and is unlikely to be significantly hit by the import issues. Stellantis’ biggest problem will come at their Kaluga factory where the company was looking to build Fiat branded vans. There was also a shared partnership at another site with Mitsubishi Motors.

Stellantis had already ceased exports and imports at the beginning of the Ukraine crisis and had warned that supply-chain issues would eventually impact the Kaluga plant. Sanctions against banks and financial institutions have added another layer of difficulty to working with the company’s Russian partners.

The Dutch firm announced their latest changes this week in statement, saying: “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 condemns violence and supports all actions capable of restoring peace.”

It’s expected that the closure of the plant and the lack of sales in the territory could cost the company in the region of €20m to €30m of its annual profit.