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After Ford recently announced that it was suspending the export of vehicles to the Russian market, General Motors did the same. All caused by the sanctions that the West imposed on Russia, as well as the effort to show solidarity with the Ukrainian people.

“Our thoughts are now with the people of Ukraine. The loss of life is a tragedy and our primary concern is for the safety of the people of the region,” a GM spokesman told Carscoops.

Previously, GM sold its stake in AvtoVAZ, thus withdrawing from the Russian market when it comes to production. GM currently has a sales company that takes care of the placement of its cars from America and Korea on the Russian and surrounding markets.

Ford and General Motors are not the only companies that have decided on such a move. The same decision was made by Volvo, while the reaction of Daimler Truck, which has a stake in Kamaz, is still pending.

Volkswagen has decided to temporarily suspend the delivery of cars to the Russian market, but also to shut down some production lines. Renault did the same a few days ago.

Source: Carscoops

The current situation caused by Russia’s invasion of Ukraine has created not only a security and political crisis, but also an economic one. Affected by the restrictions of Western countries, many companies that have plants in Russia have found themselves in a difficult situation. One of them is Renault, which announced that some production lines in AvtoVAZ will have to be shut down.

Renault will shut down some production lines in Russia — Photo: Renault Group

AvtoVAZ is part of Lada Auto Holding, which also manages a number of factories, with Renault being the majority owner with a 67.61% stake. Russia is Renault’s second largest market, just behind France. “Interruptions are caused by more rigorous border controls and the need to change logistics routes,” their official statement said. Interestingly, they did not state that the decision has anything to do with the invasion.

Renault is not the only carmaker to have invested in Russia. There are also Volkswagen and Stellantis. Volkswagen said that due to delays in the delivery of parts from Ukraine, the company was forced to stop production at two factories. Stellantis did not make any statements regarding the current situation.

Some companies have opted for drastic measures, such as Finnish tire manufacturer Nokian Tyres, which has said it will relocate its production of key product lines to its homeland.

https://www.youtube.com/watch?v=21aLDfPVYRo

Russia is also a producer of several essential metals for the auto industry, such as palladium (38%), aluminum (6%), and rhodium (the second largest producer in the world).

Source: Reuters / Renault Group

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