- The Kaluga delivery truck plant in Russia employs 2,700 people
- The company continues to pay salaries
- The plant’s co-owner, Mitsubishi, had already shut down operations
MILAN, April 19 – Automaker Stellantis (STLA.MI) said on Tuesday it was halting production at its Russian plant amid logistical difficulties and sanctions against Moscow.
The fourth largest automaker in the world, which produces and sells Peugeot, Citroёn, Opel, Jeep and Fiat brands in Russia, has only 1% of the country’s auto market.
The company operates a van manufacturing plant in Kaluga, about 201 kilometers southeast of Moscow, that is co-owned by Japanese automaker Mitsubishi (7211.T), which ceased production at the plant earlier this month. Continue reading
“Faced with the rapid daily increase in cross-sanctions and logistical difficulties, Stellantis has halted its manufacturing facilities in Kaluga to ensure full compliance with all cross-sanctions and to protect its employees,” Stellantis said in a statement.
The plant employs 2,700 people.
The company will continue to pay salaries through a local downtime program and by using anticipated vacation time, Stellantis told Reuters.
The Stellantis logo is seen on a company building in Velizy-Villacoublay near Paris, France, February 1, 2022. REUTERS/Gonzalo Fuentes
It said it didn’t know how long the disruption would last, adding that its priority was its staff and a return to peace.
Stellantis had already suspended all exports and imports of vehicles with Russia and shifted production to Western Europe following Moscow’s invasion of Ukraine. It had also said it was freezing plans for further investment in the country. Van production in Kaluga was left only for the local market. Continue reading
Scores of foreign companies have announced the temporary closure of shops and factories in Russia, or said they would leave the country for good, since Russia launched a so-called “military special operation” in Ukraine on February 24.
Carlos Tavares, Stellantis chief executive, said in late March the group must close the Kaluga plant shortly as it is running out of parts. Continue reading
Separately, General Motors Co (GM.N) said on Tuesday it would extend its suspension of business in Russia due to the conflict and international sanctions.
The US automaker, which initially suspended imports to Russia and commercial activities on February 28, said it was laying off most of its 66 employees and providing them with severance packages. GM has no plants in Russia and, prior to the suspension, sold only about 3,000 vehicles annually there. Continue reading
Additional reporting by Ben Klayman in Washington; Editing of Mark Potter and Mark Porter