Muristek
The logo of Stellantis is seen on a company’s building in Velizy-Villacoublay near Paris February 23, 2022. — Reuters pic
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PARIS, March 31 — The head of US-European automaker Stellantis said today that the group would soon suspend production of commercial vans at its only Russian factory due to a lack of parts.
“The Stellantis factory at Kaluga in Russia will have to stop its activities due to a shortage of components, which won’t make the world better,” chief executive Carlos Tavares said during a visit to the Mirafiori plant in Turin in northern Italy.
The group, which was formed in January last year when Fiat-Chrysler and PSA merged, already announced at the start of the month that it was halting all imports and exports to and from Russia and that production at the Kaluga plant — which has 2,700 workers — was slowed down.
It had been counting on the Kaluga factory, southwest of Moscow, for producing Peugeot, Citroen and Opel vans for the European market.
However, Russia’s invasion of Ukraine has forced it to transfer that production to Hordain, in France, and Luton in England.
“We’re following the letter of the law, we are doing everything to respect the sanctions but we need peace,” Tavares said.
Most carmakers have suspended their industrial production in Russia, most of it destined for the local market.
Volkswagen and Volvo announced at the beginning of March a halt at their factories in Kaluga, while Toyota has suspended activity at its Saint Petersburg plant.
Renault has also suspended work at its Moscow factory following calls by Ukraine for a boycott, but the French group also has a majority ownership in Russia’s largest car maker, AvtoVAZ. — AFP