MILAN – Stellantis said on Tuesday it was suspending production at its plant in Russia due to logistical difficulties and sanctions imposed on Moscow.
The world’s fourth largest car manufacturer, manufactured and sold PeugeotCitroёn, Opel, Jeep carand Fiat brand in Russia, medium first% of the car market of the country.
It operates a van factory in Kaluga, about 125 miles (201 km) southeast of Moscow, co-owned with the Japanese automaker. Mitsubishihalted production at the facility earlier this month.
Due to the rapid daily increase of cross-sanctions and logistical difficulties, Stellantis has suspended its production in Kaluga to ensure full compliance with all orders, Stellantis said. cross-punishment and to protect its employees,” Stellantis said in a statement.
The factory employs 2,700 people. Stellantis told Reuters the company will continue to pay wages through its local downtime program and by using scheduled vacations. It said it did not know how long the shutdown would last, adding that its priority was its staff and a peaceful return.
Stellantis suspended all vehicle exports and imports with Russia, after Moscow invaded Ukraine, shifting production to Western Europe. It also said it was freezing plans to invest more in the country. Valve production in Kaluga is still only for the local market.
Many foreign companies have announced the temporary closure of stores and factories in Russia or said they will be leaving the country since Russia began what they call “a special occasion”. army operation” in Ukraine on 24 February.
In late March, Stellantis CEO Carlos Tavares said the group would have to close the Kaluga plant as soon as it ran out of parts. Only on Tuesdays, General Motors Co said it was extending the suspension of business in Russia due to conflict and international sanctions.
The American carmaker, which initially halted imports to Russia and commercial operations on February 28, said it had laid off most of its 66 employees and provided them with split packages. GM had no factory in Russia and sold only about 3,000 vehicles annually there before the suspension.
(Additional reporting by Ben Klayman in Washington; Editing by Mark Potter and Mark Porter)
