Stellantis halts Russia production amid war-induced logistical difficulties

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UK car manufacturers are facing “global challenges”, Jonathan Reynolds has warned, in the wake of Vauxhall owner Stellantis announcing plans to close its Luton plant.
UK car manufacturers are facing “global challenges”, Jonathan Reynolds has warned, in the wake of Vauxhall owner Stellantis announcing plans to close its Luton plant.

Automotive giant Stellantis has halted production in Russia as a result of logistical difficulties caused by Western sanctions on Moscow.

The owner of Fiat, Chrysler and Peugeot announced today it was closing its plant near Moscow.

“Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its employees,” the group said in a statement.

Run alongside Mitsbubishi, Stellantis’s plant will remain closed for the time being, while its 2,700 employees will continue to receive their salaries through a local downtime scheme.

The world’s fourth-largest manufacturer suspended last month all imports and exports with Russia and moved production to western Europe as war-induced shortages started to bite.