Volkswagen Group ‘concerned’ about Russia’s attack on Ukraine
German carmaker Volkswagen Group told Kallanish on Friday it sees the Russian attack on Ukraine with great concern and dismay.
A task force is currently assessing the impact on the group’s activities in both countries, after Western economic sanctions are placed to hurt the Putin regime. Restrictions in Europe, UK and the US ban companies from trading with Russia, potentially directly affecting Volkswagen Group’s supply chain in its Russian car plant. The facility in Kaluga has the capacity to produce 225,000 cars per year.
The sanctions also seek to cut Russia’s access to most important capital markets, ban export financing, and impose export controls. Additionally, they specifically limit Russia’s access to crucial technology including semiconductors.
“Volkswagen is hoping for a quick cessation of hostilities and a return to diplomacy. We are convinced that a sustainable solution to the conflict can only take place on the basis of international law,” a VW Group spokesperson said in an emailed statement. “The degree of impact on our business activities in the affected countries is continuously determined by a task force.”
It may still be too early to gauge the impact on operations, which are believed to currently be running normally. But sanctions are also expected to negatively impact Renault, Stellantis, Mercedes-Benz and Hyundai, which own manufacturing plants in Russia. A Renault spokesperson said the company is “following the ongoing situation very carefully.”
Earlier this week, prior to Russia’s invasion of Ukraine, Stellantis’ ceo Carlos Tavares said that “if we can’t supply the plant...we have either to transfer that production to other plants, or just limit ourselves.”
US carmakers GM and Ford exited the Russian passenger carmaking arena in 2019, following the annexation of Crimea.
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