VW Stops Production and Halts Vehicle Exports to Russia As War Intensifies

As the Russia-Ukraine war intensifies, the rest of the world is also suffering some ripple effects. The automotive industry is one of the worst-hit after barely recovering from the global health crisis and industry-wide semiconductor crisis. The international community is distraught over the series of events, and over the last couple of days, Russia has fallen victim to a new kind of ammunition— international sanctions, the latest by VW Group.
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VW Group has announced the complete stoppage of vehicle production and export in Russia. According to the world’s leading automotive manufacturer, they are in great shock and dismay over the unfolding events in Ukraine.

VW Group is not the only large international corporation stopping services in Russia. Leading airlines like Airbus and Boeing, Spirit maker Diageo, and furniture supplier IKEA have also ceased operations in the country.

According to the statement, Volkswagen AG hope for a cessation of hostilities and a return to diplomacy. The automaker added that they are confident that international law provides a sustainable solution to the ongoing conflict.

Renault and Avtovaz (Renault controlled), the largest automaker in Russia, announced that they would be suspending operations this week. The automaker reported Thursday it would stop plant operations for four days from March 9 to 11 over supply chain issues.

Against the background of the Russian attack on Ukraine and the resulting consequences, the Group Board Management of Volkswagen AG has decided to stop the production of vehicles in Russia until further notice,” Volkswagen's statement read.

The decision to cease production by the German automaker applies to both its production plants in Russia in Kaluga and Nizhny. Additionally, VW stopped all vehicle exports to the country as well. Industry insiders disclosed more automakers will follow suit.

The automotive industry continues to suffer under the effects of the conflict in Ukraine. Oil hit $113 a barrel despite emergency measures spewing more anxiety in an industry already grappling with rising production prices.

Editor's note: The images featured are for illustration purposes.


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