Mitsubishi has problems with production: what decision has it made, how does it affect the car industry

Mitsubishi has said it has stopped production at a Russian plant it owns with Stellantis due to logistical difficulties.

Mitsubishi Motors has said it has stopped production at a Russian plant in Kaluga, which it owns with Stellantis, until further notice, joining other major carmakers that have shut down operations in Russia.

“Due to logistical difficulties, vehicle exports and the supply of parts to Russia have been suspended since March,” Mitsubishi said in a statement.

It was not immediately clear whether Stellantis also stopped operations in Kaluga. The carmaker, which previously suspended all car exports to Russia, as well as all imports from Russia, did not make a public statement on the matter.

Stellantis said in late March that it would have to close its Kaluga plant soon because it ran out of parts.

Problems for the Russian car industry

Russia’s car industry is suffering because of the war in Ukraine.

The Russian PCMA plant is building Mitsubishi Pajero Sport and medium-sized commercial vans for Citroen, Opel and Peugeot.

Stellantis said it is moving some of its Kaluga van production to factories in Hordain, France and Luton, England, and is freezing plans for more investment in Russia, while keeping Kaluga van production only for the local market.

Sales of new cars in Russia fell 63 percent in March, contracting for the ninth consecutive month as the industry faced a sharp shortage and rising prices caused by a sharp drop in the ruble and disrupted logistics.

Japan has joined the United States and other allies in imposing additional sanctions on Russia, including a freeze on the assets of the country’s leaders and three financial institutions, to punish Russia for what Moscow calls a “special military operation” in Ukraine, which began on February 24. .