Car giants break ties with Russia: tough measures taken by the car industry

Swedish carmaker Volvo Cars has announced that it will suspend deliveries of cars to the Russian market.

The company said the decision was made because of the potential risks associated with trading materials with Russia.

Volvo Cars has announced that it will suspend deliveries of cars to the Russian market until further notice, as sanctions for Moscow’s invasion of Ukraine continue to escalate.

Furthermore, the manufacturer said the decision was made because of “potential risks associated with trade in materials with Russia, including EU and US sanctions.”

“Volvo Cars will not deliver any cars to the Russian market until further notice,” the company said in a statement.

A Volvo spokesman said the carmaker exports vehicles to Russia from factories in Sweden, China and the United States.

Volvo Cars is controlled by Chinese group Geely, which took over Swedish carmaker Ford Motor in 2010 for $ 1.8 billion.

According to industry figures, Volvo has sold about 9,000 cars in Russia in 2021.

The car industry aligns with EU policy

The RIA news agency said that Volkswagen had temporarily suspended deliveries to local offices already in Russia. The news agency quoted a statement from VW.

Swedish truck manufacturer AB Volvo has said it has stopped all production and sales in Russia due to the crisis in Ukraine.

German truck manufacturer Daimler Truck has announced that it will freeze its commercial activities in Russia with immediate effect, including cooperation with Russian truck manufacturer Kamaz.

Hyundai will suspend production at its St. Petersburg plant on March 1-5, Interfax news agency reported, citing a Russian official from the South Korean company.

Mitsubishi Motors said it could suspend production and sales of its cars in Russia, as economic sanctions could trigger supply chain disruptions.

General Motors has announced that it will suspend all vehicle exports to Russia until further notice.

The Detroit-based company has no factories in Russia, sells only about 3,000 vehicles a year, and has limited supply chain exposure.

Ford Motor, which owns a 50 percent stake in three Russian plants, said it was working to manage any impact on its operations, but the main goal was the safety of its employees in the region.