During 2022, most manufacturers stopped production of their cars in plants located in Russia, due to the Russian invasion of Ukraine. However, according to the latest information, the Russians have found a way to continue the production of some models, such as the Citroen C5 Aircross, in the Stellantis plant with parts manufactured in China.

The Chinese manufacturer Dongfeng Motor Group, Stellantis’ partner in China, supplied parts to the Russian company Automotive Technologies, which began assembling the Citroen C5 Aircross. This is not the first time that Chinese companies violate agreements with other manufacturers, and this time the reason could be the agreement that Stellantis reached with another Chinese company (Leapmotor).

Customs records do not indicate that Stellantis knew about the imports, but evidence obtained by other companies shows a lack of control over their brands in Russia after leaving the country. The Chinese company Dongfeng, the Russian Ministry of Industry and Trade and Automotive Technologies did not comment on this case.

How Stellantis will respond to this cheeky move by Chinese and Russian companies remains to be seen.

Russia is taking advantage of the current situation to continue producing cars in factories abandoned by their owners through parallel imports. Stellantis and Mitsubishi Motors in Russia own a plant in Kaluga (70% + 30%) where 125,000 vehicles were produced annually. Leaving Russia had a negative impact on Stellantis Group, with a loss of EUR 144 million plus and EUR 87 million in cash.

Source: Reuters