At least 10 of the world’s largest car makers will close factories and withdraw from the Russian market, following the nation’s invasion of Ukraine.
Russia’s widely-condemned invasion of Ukraine last month has has had far-reaching implications on the automotive industry.
Fuel prices spiked to record highs almost immediately following the attack, complex supply chains are facing worsening disruptions, and an increasing number of vehicle manufacturers are announcing new plans to exit the market.
Some are closing their domestic manufacturing plants in Russia, while others are refusing to import vehicles to the country all together – with many doing both.
Reasons cited for the withdrawal include humanitarian concerns, the impact of Western sanctions on the local economy, payment complications, and logistical difficulties.
These are the car makers that have announced plans to pull out of the Russian market (as of publishing).
Ford Motor Company has ceased all manufacturing in Russia, and slammed the brakes on local imports – citing humanitarian concerns.
“As part of the global community, Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability … The situation has compelled us to reassess our operations in Russia,” the Detroit-based marque said in an offical statement.
Ford sold approximately 22,000 vehicles in Russia last year, representing 0.5 per cent of its total worldwide deliveries. Approximately 20,000 of those vehicles were built locally as part of the recently-terminated Ford-Sollers agreement.
Renault has suspended some operations at its three plants in Russia, citing “interruptions in supplies of components” – however it will continue to sell its cars in the Eastern European country.
A statement explaining the decision in depth was not published. However, the French manufacturer’s share price collapsed by almost a quarter immediately following the invasion due to its reliance on Russian parts and ownership of the Lada (AvtoVAZ) marque.
Renault and its subsidiaries sold approximately 500,000 cars in Russia during 2021, representing 18 per cent of its total worldwide deliveries. While exact figures have not been released, a significant percentage of those vehicles were built domestically.
Volvo does not currently operate factories in Russia. However, it has confirmed it will not import vehicles into the country for the immediate future – citing trade sanctions and logistical difficulties.
“Considering the potential risks associated with trading material with Russia – including the sanctions imposed by the European Union and United States – Volvo will not deliver any cars to the Russian market until further notice,” the Chinese-owned Swedish marque said in an offical statement.
Volvo sold approximately 9000 cars in Russia during 2021, representing 1.5 per cent of its total worldwide deliveries. It built no vehicles domestically.
Toyota has closed the doors of its St Petersburg factory, and temporarily halted all imports – citing supply chain disruptions.
“[We are watching] the ongoing developments in Ukraine with great concern for the safety of people of Ukraine and hopes for a safe return to peace as soon as possible … Toyota will stop production at its St Petersburg plant and has stopped imports of vehicles,” the Japanese manufacturer said in an official statement.
Toyota sold approximately 97,000 cars in Russia during 2021, representing 1.1 per cent of its total worldwide deliveries. It built approximately 80,000 of those vehicles domestically.
Honda was already preparing to pull out of the Russian market – however, it claims sanctions and shipping complications have forced it to withdraw quicker than it otherwise would have.
The Japanese manufacturer did not release a statement on its decision.
Honda sold approximately 1400 cars in Russia during 2021, representing 0.03 per cent of its total worldwide deliveries. It builds no vehicles domestically.
General Motors – the owner of Cadillac, Chevrolet, Buick, and GMC – will halt all vehicle imports to Russia until further notice, citing humanitarian concerns.
“Our thoughts are with the people of Ukraine at this time … The loss of life is a tragedy and our overriding concern is for the safety of people in the region,” the US automotive giant said in an official statement.
General Motors and its subsidiaries sold approximately 9000 cars in Russia during 2021, representing 0.14 per cent of its total worldwide deliveries. It builds no vehicles domestically.
BMW and its subsidiary Mini have pressed pause on all local manufacturing and exports to Russia – with the invasion and “geopolitical situation” merely cited as the cause.
“Due to the current geopolitical situation, we will stop our local production and export for the Russian market until further notice,” a spokesperson for the German car maker told the Wall Street Journal. It’s unclear if parts availability or humanitarian concerns is the primary reason.
BMW and its subsidiaries sold approximately 49,000 cars in Russia during 2021, representing 2.3 per cent of its total worldwide deliveries. It built approximately 12,000 of those domestically.
Volkswagen has ended all vehicle imports to Russia and shut the doors of its factories in Kaluga and Nizhny Novgorod – also citing humanitarian concerns.
“The Volkswagen Group has received the news about the war in Ukraine with great dismay and shock,” the German manufacturer said in an official statement.
“Against the background of the Russian attack on Ukraine and the resulting consequences, the Group Board of Management of Volkswagen AG has decided to stop the production of vehicles in Russia until further notice … Vehicle exports to Russia will also be stopped with immediate effect.”
Volkswagen and its subsidiaries sold approximately 200,000 cars in Russia during 2021, representing 2.3 per cent of its total worldwide deliveries. It built approximately 170,000 of those domestically.
Jaguar Land Rover
Jaguar Land Rover has discontinued all exports to Russia, citing logistical and financial difficulties.
“The current global context also presents us with trading challenges, so we are pausing the delivery of vehicles into the Russian market and continually monitoring the situation on behalf of our global customer base,” a spokesperson for the Indian-owned British marque told the BBC.
Jaguar Land Rover sold approximately 6900 cars in Russia during 2021, representing 1.6 per cent of its total worldwide deliveries. It builds no vehicles domestically.
Mercedes-Benz has suspended all exports to Russia and pressed pause on its local manufacturing operations, citing humanitarian concerns.
“Mercedes-Benz will suspend the export of passenger cars and vans to Russia as well as the local manufacturing in Russia until further notice,” the German marque said in an official statement.
Mercedes-Benz sold approximately 44,849 cars in Russia during 2021, representing 2.2 per cent of its total worldwide deliveries. It built approximately 20,000 of those domestically.
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