Franco-Italian carmaker Stellantis halts van production in Russia

Group blames 'cross sanctions' and 'logistical difficulties'

14:42 . 19/04/2022 Tuesday
File photo

File photo

Franco-Italian automaker Stellantis said Tuesday it was halting production at a van factory in Russia’s Kaluga, attributing the decision to “cross sanctions” and “logistical difficulties.”

“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 to protect its employees,” a company statement said.

Since the outbreak of the war in Ukraine, which Russia began on Feb. 24, several foreign companies have suspended manufacturing activities in Russia, including carmakers Renault, Mitsubishi and Toyota.

Stellantis was operating the plant in Kaluga, about 200 kilometers southwest of Moscow, in partnership with Mitsubishi. Last month, Stellantis had suspended exports and imports to and from Russia, but kept its Russian factory going.

The Franco-Italian company is the world’s fourth-largest carmaker, formed after the merger of Italy’s Fiat Chrysler and France’s PSA. Its portfolio of brands includes Peugeot, Opel, Citroen, Alfa Romeo and Maserati.

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