Seems to me that the Russians are hurting Europe and the US more that we are hurting them.
Are you sure about that? Seems to me that Russia is going about eliminating all advanced manufacturing from their economy. Their future is looking more and more like a country that will be supplying raw materials to China.
Nissan revealed Tuesday it will formally sell its business operations in Russia to state-owned entity NAMI for the grand total of 1 euro ($0.97), incurring a loss of roughly $681 million,
Reuters reports.
Volkswagen said it is stopping business in Russia. The automaker has suspended production at its Kaluga and Nizhny Novgorod sites until further notice.
Audi, which is part of VW, said it was adjusting its manufacturing operations
at its Hungarian factory, which accounts for a good amount of Hungary’s exports, because the war in Ukraine was affecting supply chain and sales.
Japanese company Suzuki has suspended car exports to Russia and Ukraine from its Hungarian factory, and Daimler-Benz said it lowered output to two shifts at its Hungarian plant.
Toyota Motor Corporation said it would halt production at its Russian factory. The company has one plant in St. Petersburg that manufactures RAV4 and Camry models, mainly for the Russian market.
Daimler Truck said that it would halt all of its business activities in Russia, which includes a joint venture with Russian truck maker Kamaz. The JV, which has produced 35,000 trucks for the Russian market so far, started as two separate JVs in 2009 between Mercedes-Benz Trucks Vostok and Fuso Kamaz Trucks Vostok, but those two companies merged in 2017. Now, no more trucks will be built under the partnership with Kamaz, and Daimler won’t supply the truck maker with any more components,
according to Reuters.
Mercedes-Benz, Daimler’s former parent company before it spun off, also said it would divest its 15% stake in Kamaz. The company also recently said it has
$2.2 billion in assets that could be threatened by Russian proposals to nationalize property of foreign firms that leave because of its invasion of Ukraine.
Swedish truck maker
AB Volvo has halted all production in Russia, and
Ford Motor Company has suspended operations in Russia until further notice. Ford doesn’t have significant operations in Ukraine, aside from a joint venture with Russian automobile company Sollers, but
Ford ceded the controlling interest to Sollers back in 2019.
French carmaker Renault said it would suspend some operations at its car assembly plants in Russia due to logistics bottlenecks that have caused shortages in components. The French automaker accounts for nearly 40% of Russia’s vehicle production, according to research firm IHS Markit.
Renault has not provided specifics in regards to production cuts, but the automaker has three car assembly plants in Russia. Renault’s main models built at its Moscow plant for Russian buyers are Kaptur, Duster, Nouveau Duster, Arkana and Nissan Terrano. Renault has a strategic alliance with Nissan and Mitsubishi. Renault also has a controlling stake in Russian automaker AvtoVAZ.
South Korea’s
Hyundai Group makes around 230,000 cars per year at its St. Petersburg facility and accounts for 27.2% of Russia’s vehicle production. The company said it would suspend its car assembly plant in St. Petersburg on March 1-5 due to supply chain disruptions. It was meant to resume operations the following week, according to
The Wall Street Journal, but Hyundai’s factory remains closed as of mid-March. WSJ reported that the closure is separate from Russia’s invasion of Ukraine or any economic sanctions. Russia is a big market for Hyundai, so the automaker may try not to cease operations for much longer if it can be helped.
Czech carmaker Skoda Auto, which is a part of Volkswagen, said it would limit some production at its domestic plants due to supply shortages, but its Russian operations were still running. Russia was Skoda’s second-largest market last year.
Japan-based Mitsubishi Motors said it may suspend production in Russia. Mitsubishi has a joint venture agreement with PSA Peugeot Citroën that produces vehicles for Peugeot, Citroën and Mitsubishi in Russia at an assembly plant in Kaluga.
In addition to potentially pausing production in Russia, Mitsubishi said it might halt sales of its cars in the country. Toyota said it would stop exporting vehicles there.
U.S. automaker General Motors and Swedish automaker Volvo Cars said that they would suspend all vehicle exports to Russia until further notice. The Volvo Group generates about 3% of its sales from Russian buyers and has one factory in the country.
Volvo, which was the first international automaker to suspend car shipments to Russia, said in a statement that it had done so because of “potential risks associated with trading material with Russia, including the sanctions imposed by the EU and U.S.”
GM sells about 3,000 vehicles annually in Russia and doesn’t have any plants there.
Volkswagen‘s Russian unit temporarily suspended car deliveries to dealers until further notice, or until the sanctions imposed by the European Union and the United States are clarified. The automaker went further and said it would cease vehicle exports to Russia immediately.
Another German car company, BMW, has halted the export to Russia and said it would stop production there due to expected supply bottlenecks.
Harley-Davidson said that it had halted business and shipments of motorcycles to Russia, a brand that Russian President Vladimir Putin has been
photographed riding. Russia isn’t a very significant market for the U.S. bike company, which has only around 10 dealerships in the country.
Jaguar Land Rover (JLR) and Aston Martin, two British luxury carmakers, have also paused vehicle shipments to Russia due to trading challenges. JLR sold 6,900 vehicles to Russia last year, which makes up less than 2% of its global sales. Aston Martin said that Russia and Ukraine together make up 1% of global sales.
