Tag Archives: Russia

News

Russia invests over $900 million in the automotive industry

In February 2022, Russia launched an invasion of Ukraine, which caused a reaction from the international community and the introduction of sanctions that forced many manufacturers to stop production in Russia. The sanctions were expected to bring the Russian economy to its knees, which happened at first, but recent information suggests that the Russians have found a solution for their automotive industry. The Russian government intends to invest up to $ 900 million in the development of a platform for their new car over the next three years.

Most of the funds come from the Russian parliament, and the project is led by NAMI (automotive institute). NAMI owns the premium brand Aurus Motors, which produces limousines for Russian President Vladimir Putin.

“By designing such a modular platform, we are laying the foundation for the development of our automobile production. It will be used for cars of various classes, from compact to business. NAMI will play a leading role in this project, and the main task is to unify the component base for this platform. The new platform will also be used for the serial production of hybrid and especially electric vehicles in the future,” said Alexey Matushansky, Director of the Department for Strategic Development and Corporate Policy at the Ministry of Industry and Trade.

The batteries for the car will be produced by Rosatom (the Russian state atomic energy company), and the construction of two battery production plants is underway.

The Russians have previously tried to restore the production of European-brand cars, but illegally. In early 2024, information appeared that 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 was not the first time that Chinese companies violated agreements with other manufacturers, and this time the reason could be the agreement that Stellantis reached with another Chinese company (Leapmotor).

Customs records did not show 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.

Source: Reuters

News

BMW fired employees who illegally exported cars to Russia

After Russia invaded Ukraine nearly four years ago, the EU imposed sanctions, forcing European manufacturers to suspend operations in the country. However, a few days ago BMW fired the employees who were involved in the delivery of cars to Russia, because they violated the sanctions.

According to Business Insider, more than 100 premium cars were illegally delivered from Hanover to Russian customers, and BMW confirmed that measures were taken to prevent similar cases in the future. It is not known whether employees of other brands were involved in similar illegal operations.

Despite the sanctions, cars from German brands continue to appear in Russia. In August, ARD journalists discovered that new BMW, Mercedes-Benz and Volkswagen cars can be purchased in Russia.

The BMW Group claims to continue the fight against these illegal deliveries.

Source: Business Insider

News

Russians produce Citroen C5 Aircross without Stellantis approval

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