Car manufacturer Stellantis plans to discontinue production in Russia

Car manufacturer Stellantis plans to discontinue production in Russia


 

Interfax.- Automaker Stellantis, formed as a merger of the Italo-American FIAT Chrysler Automobiles (FCA) and the French PSA Group last year, is thinking about the transfer of production out of Russia in case of negative circumstances due to the sanctions, as written in Wall Street Journal – WSJ, quoting the head of the company Carlos Tavares.

PSMA Rus plant is the main production asset of Stellantis Group in Russia, which operates at the Rosva Industrial Estate in Kaluga, manufacturing automobiles in full-cycle mode since 2012. According to reports, approximately €550 million have been invested in the project. 70% of Stellantis belongs to the enterprise and the remaining 30% to Mitsubishi. The factory manufactures Peugeot 408 and Citroen C4, besides the LCV models of Peugeot, Opel and Citroen, as well as the Peugeot Partner, Citroen Berlingo and Opel Combo mini and compact vans. Mitsubishi, on the other hand, assembles Outlander and Pajero SUVs at the facilities of PSMA Rus.

According to the WSJ, Tavares had previously stated that he was not yet sure of the possible effects of the sanctions on the production of Stellantis at Kaluga plant. In the light of the reports of the publication, the statements on the possible consequences of sanctions in connection with the recognition of the DPR and LPR seem to have been made on Wednesday.

If events take the wrong turn, we won’t be able to supply the plant, facing the predicament of either transferring the production to another plant or facing the restrictions” – the publication quoted Tavares.

As reminded by the WSJ, the production doubled at the Kaluga plant in 2021, reaching 11,000 LCVs. As of the end of last year, the plant increased the export production to Western Europe and started the assembly of Peugeot Expert, Opel Vivaro and Citroen Jumpy for export markets. In addition, Stellantis announced plans to launch the production of manual gearboxes in Russia in 2022, as well as the export production of FIAT Scudo.

Tavares, who is scheduled to unveil the 2030 strategy of Stellantis next week, has said that the geopolitical risks are affecting how the company makes decisions going forward. “The automotive industry has been subject to the effects of geopolitics many times during the last decade” – as the WSJ quoted Tavares.

According to the Association of European Business (AEB) data, the sales of Stellantis rose by 64.7% in Russia in 2021, to 18,526 automobiles.