Automaker Stellantis said on Tuesday it was suspending production at its Russian factory 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% of the country’s car market.
Stellantis runs a 2,700-employee van factory in Kaluga, about 201 kilometers southeast of Moscow, owned by Japanese automaker Mitsubishi, 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 protect its employees,” Stellantis said in a statement.
The company will continue to pay salaries through a local downtime scheme and using early vacation periods, Stellantis told Reuters.
The group said it did not know how long the shutdown would last, adding that its priority was its staff and the return of peace.
Stellantis had already suspended all vehicle exports and imports with Russia following Moscow’s invasion of Ukraine, shifting production to Western Europe and freezing plans for further investment in the country.
The production of vans in Kaluga remained solely for the local market. However, Stellantis Chief Executive Carlos Tavares said in late March that the group would have to close the Kaluga plant soon as it was running out of parts.
Source: CNN Brasil
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