Photo: ACEA
Several automakers have stopped shipping vehicles to Russia, sources say. The news is yet to be confirmed through press releases, but multiple companies have allegedly informed their dealers and partners in Russia that their deliveries have been suspended. Some units will reach the country, though, but only those sent out before February 24, 2022. It is all linked to Russia's actions against Ukraine.
At this point, it is unclear how many units are already in transit, as well as how many were supposed to reach customers. What is clear is that the situation might take weeks or months to resolve if the reports are accurate because the manufacturers may decide to redistribute the remaining units after their delivery to Russia is canceled.
In the case of vehicles that were supposed to reach the production line and get manufacturer after the specified date, well, those will see the biggest delays, as it is clear that their spots on the line will be provided to the next eligible dealers.
In other words, customers in Russia, including dealers, who have placed an order on a specific configuration, but have yet to be built, will face months of delays before their configuration will see the light of day.
The reason for the delays is the global chip shortage, which has made the production of vehicles a complicated mess from a logistical standpoint. In the case of the delivery delays in Russia, the reason is entirely different, and it is linked to the military action it started against Ukraine. The armed conflict has been heavily criticized by the international community, and sanctions are building up against Russia.
Even before starting an armed conflict against Ukraine, the value of the Russian ruble, the country's national coin, was not exceptional, but it has plummeted since then. For example, a distributor of utility vehicles and construction equipment in Russia, called Rusbiznesavto, asked its partners for the full payment for all signed contracts of imported equipment, Russian media reports.
The same publication claims that the brands that have suspended deliveries to Russia are Audi, Škoda, Porsche, Volkswagen, Chevrolet (and all other GM products), Jaguar Land Rover, and more.
Most likely, other manufacturers have made similar decisions, but they are not publicly announced or otherwise quoted by sources within the dealer network.
The conflict has also led to production being suspended in some factories, including some in Europe, as they were using components sourced from Ukraine, and the supply chain has been disrupted. The same has happened with manufacturers in Russia that built vehicles with parts from Europe.
In the case of vehicles that were supposed to reach the production line and get manufacturer after the specified date, well, those will see the biggest delays, as it is clear that their spots on the line will be provided to the next eligible dealers.
In other words, customers in Russia, including dealers, who have placed an order on a specific configuration, but have yet to be built, will face months of delays before their configuration will see the light of day.
The reason for the delays is the global chip shortage, which has made the production of vehicles a complicated mess from a logistical standpoint. In the case of the delivery delays in Russia, the reason is entirely different, and it is linked to the military action it started against Ukraine. The armed conflict has been heavily criticized by the international community, and sanctions are building up against Russia.
Even before starting an armed conflict against Ukraine, the value of the Russian ruble, the country's national coin, was not exceptional, but it has plummeted since then. For example, a distributor of utility vehicles and construction equipment in Russia, called Rusbiznesavto, asked its partners for the full payment for all signed contracts of imported equipment, Russian media reports.
The same publication claims that the brands that have suspended deliveries to Russia are Audi, Škoda, Porsche, Volkswagen, Chevrolet (and all other GM products), Jaguar Land Rover, and more.
Most likely, other manufacturers have made similar decisions, but they are not publicly announced or otherwise quoted by sources within the dealer network.
The conflict has also led to production being suspended in some factories, including some in Europe, as they were using components sourced from Ukraine, and the supply chain has been disrupted. The same has happened with manufacturers in Russia that built vehicles with parts from Europe.
??Audi, Jaguar Land Rover, BMW, Mercedes-Benz, Citroen and General Motors have suspended shipments of cars to #Russia.
— NEXTA (@nexta_tv) February 25, 2022
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