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Stellantis stops production in Russia because of sanctions, logistics

Breana Noble, The Detroit News on

Published in Automotive News

The maker of Chrysler, Jeep, Dodge and Ram on Tuesday said it has halted production of commercial vans at its plant in Russia.

Stellantis NV has suspended the manufacturing operations at the plant in Kaluga more than three hours southwest of Moscow it operates with Mitsubishi Motors Corp. The company in a statement cited increasing cross sanctions related to Russia's invasion of Ukraine, logistical challenges and its efforts to protect employees.

The automaker produces about 11,000 vehicles at the plant annually. It had announced it began exporting vans to other countries in January, which it stopped last month, focusing on production for the local market.

Also on Tuesday, General Motors Co. said it will extend the suspension of its Russia business, affecting most of the 66 employees there who will be offered separation packages.

The Detroit automaker — which suspended vehicle imports and commercial activity in Russia on Feb. 28 — will not be able to provide aftersales support in the country.

 

Ford Motor Co. and other automakers also halted operations in February in Russia because of the invasion. Stellantis CEO Carlos Tavares had said the Kaluga plant would operate until obtaining parts became an issue in order to support employees.

Stellantis also had planned to add production of transmissions in Kaluga before the end of the year. Since Ukraine was attacked, though, Tavares has said the company isn't considering making more investments in Russia for now.

The automaker also committed $1.1 million in aid to help Ukrainian refugees. "Stellantis condemns violence and supports all actions capable of restoring peace," the automaker added in its statement.

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