Sanctions in Russia are not a simple matter as big companies like Renaultthe VW and the Stellantis they have large openings there and they will definitely find themselves in an extremely difficult position.
The possibility of severe Western sanctions against Russia will cause severe unrest in the major European car industries, some of which are quite exposed to Russian territory.
Any sanctions will have a major impact at Renault, VW and Stellantis which are active there and have large production units in Russia.
The Renault group has the largest exhibition, as it has the majority package of AvtoVAZ, the manufacturer of Ladawhich dominates in Russia. The group has two huge factories in Russia with the country’s market being the largest after France.
It is not clear at this time how the sanctions will affect companies, although Iran’s precedent in 2018 had significant implications for both the PSA Group and Renault.
Renault shares were down 4.2% on Tuesday. While the CEO of AvtoVAZ announced that he is looking for alternative sources for refueling critical components if the sanctions apply.
VW and Stellantis are also active in the country, as well as other companies that have assembly units. The most important factories are in the city of Kaluga, 180 kilometers southwest of Moscow, which is the center of the Russian car industry.
VW produces the Tiguan and Polo there, along with the Skoda Rapid. It also manufactures Audi Q7 and Q8 engines. Its total production in 2021 was 118,000 cars with an annual capacity of 150,000 units.
VW’s financial interests exceed 1 billion euros in the Kaluga plant which opened in 2007 and over 2 billion euros in all its activities in Russia.
The Stellantis Group also has a plant in Kaluga in collaboration with Mitsubishi. Just last month, the company announced that it would start exporting professional vans from its Russian plant. The plant started in 2017 and produces vans under the Peugeot, Citroen and Opel brands.
Mercedes-Benz has also invested over 250 million euros for the construction of a factory north of Moscow which manufactures E-Clas and some SUVs. The factory started in 2019 and employs over 1,000 workers.
THE BMW has a factory producing electronic systems since 1999 while canceled its plans for an assembly plant in 2020.
THE Ford was the first foreign company to invest in a factory in Russia, St. Petersburg since 2002, although since 2019 he has left the country. Ford has also closed two car and engine assembly plants and remains active in van production in cooperation with a Russian company, Sollers.
The Russian car market in 2021 closed at 1,66,780 carswith five of the ten cars in the top ten belonging to the group Renault. Among them is the Lada Vesta which is the most popular car on the market, with 113,698 units in 2021.
Why will Stellantis import a van to Europe from Russia?
Russia: Dynamic Entry into Electricity – What Motivates It
Official: Vladimir Putin’s car is being prepared!
See ALL the latest news as it happens in the newsauto