Automakers Around the World Suspend Operations in Russia Over Ukraine Crisis

According to carmakers' association VDA, Germany exported 4,100 cars to Ukraine and 35,600 cars to Russia last year

Tech and Auto
2 min read
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Edited By :Tejas Harad

Japanese automaker Toyota Motor Corp said it will halt production at its Russian factory from Friday indefinitely due to supply chain disruptions. Toyota imports into the country have also stopped.

Honda has suspended shipments of automobiles to Russia, while Mazda is also planning to halt exports of auto parts to its factory in the country, company officials told Kyodo on Wednesday.

"Like everyone around the world, Toyota is 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 said in a statement.

Its factory in St Petersburg, Russia, which can make 1,00,000 vehicles in a year, manufactures the RAV4 sport utility vehicle and the Camry sedan. It employs around 2,600 people, according to AFP.


German Automakers Follow Suit

Germany's Mercedes-Benz Group and Volkswagen are also stopping exports of vehicles to Russia and are halting production in the country until further notice.

Volkswagen, which owns popular brands like Audi and Skoda, said it has decided to stop production at its Kaluga and Nizhny Novgorod plants.

"All affected employees in Russia will receive short-time working benefits, paid by Volkswagen," the company announced on Twitter.

According to carmakers association VDA, Germany exported 4,100 cars to Ukraine and 35,600 cars to Russia last year, accounting for 1.7 percent of German car exports between them. German manufacturers produced 170,000 cars in Russia in 2021, mainly for the domestic market.

South Korea's Hyundai, which makes around 2,30,000 cars per year at its St Petersburg facility and accounts for 27.2 percent of Russia's vehicle production, said it would suspend production this week due to supply chain disruptions, but will resume operations next week, according to the Wall Street Journal.

Swedish truck maker AB Volvo has stopped production in Russia, and Ford Motor Company said that it has suspended operations in Russia until further notice.

French carmaker Renault has already suspended some operations at its car assembly plants in Russia due to logistics bottlenecks, while luxury carmakers Jaguar Land Rover (JLR) and Aston Martin have also paused vehicle shipments to Russia.

(With inputs from Kyodo, Wall Street Journal, and AFP.)

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