Countries around the world are tightening sanctions against Russia in response to the country’s invasion of Ukraine last week. As a result, companies are limiting, halting or fully exiting business activities in Russia, including many automakers.
Here are all measures taken by automakers that have decided to pull back operations in Russia so far.
This list was last updated: March 17, 2022.
Automakers halting production in Russia & surrounding countries
Many shipping giants and logistics companies, like MSC and Maersk, have suspended container shipping to and from Russia, resulting in automakers needing to halt production due to supply chain disruptions.
Volkswagen said it is stopping business in Russia. The automaker has suspended production at its Kaluga and Nizhny Novgorod sites until further notice. Audi, which is part of VW, said it was adjusting its manufacturing operations at its Hungarian factory, which accounts for a good amount of Hungary’s exports, because the war in Ukraine was affecting supply chain and sales.
Japanese company Suzuki has suspended car exports to Russia and Ukraine from its Hungarian factory, and Daimler-Benz said it lowered output to two shifts at its Hungarian plant.
Toyota Motor Corporation said it would halt production at its Russian factory. The company has one plant in St. Petersburg that manufactures RAV4 and Camry models, mainly for the Russian market.
Daimler Truck said that it would halt all of its business activities in Russia, which includes a joint venture with Russian truck maker Kamaz. The JV, which has produced 35,000 trucks for the Russian market so far, started as two separate JVs in 2009 between Mercedes-Benz Trucks Vostok and Fuso Kamaz Trucks Vostok, but those two companies merged in 2017. Now, no more trucks will be built under the partnership with Kamaz, and Daimler won’t supply the truck maker with any more components, according to Reuters.
Mercedes-Benz, Daimler’s former parent company before it spun off, also said it would divest its 15% stake in Kamaz. The company also recently said it has $2.2 billion in assets that could be threatened by Russian proposals to nationalize property of foreign firms that leave because of its invasion of Ukraine.
Sales and export suspensions
As part of Western sanctions against Russia, many Russian banks were shut out of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a secure messaging system that allows rapid cross-border payments. As a result, car dealers or buyers in Russia couldn’t buy foreign cars and foreign companies couldn’t sell them.
In addition to potentially pausing production in Russia, Mitsubishi said it might halt sales of its cars in the country. Toyota said it would stop exporting vehicles there.
Hyundai‘s exports to Russia have been slashed in half due to the crisis.
U.S. automaker General Motors and Swedish automaker Volvo Cars said that they would suspend all vehicle exports to Russia until further notice. The Volvo Group generates about 3% of its sales from Russian buyers and has one factory in the country.
Volvo, which was the first international automaker to suspend car shipments to Russia, said in a statement that it had done so because of “potential risks associated with trading material with Russia, including the sanctions imposed by the EU and U.S.”
GM sells about 3,000 vehicles annually in Russia and doesn’t have any plants there.
Harley-Davidson said that it had halted business and shipments of motorcycles to Russia, a brand that Russian President Vladimir Putin has been photographed riding. Russia isn’t a very significant market for the U.S. bike company, which has only around 10 dealerships in the country.
Jaguar Land Rover (JLR) and Aston Martin, two British luxury carmakers, have also paused vehicle shipments to Russia due to trading challenges. JLR sold 6,900 vehicles to Russia last year, which makes up less than 2% of its global sales. Aston Martin said that Russia and Ukraine together make up 1% of global sales.
The geopolitical situation and automakers’ responses are constantly evolving. Check back in for updates.