The latest Russian sanctions imposed by the West due to Russia’s invasion of Ukraine have continued the halt in production for Germany’s Volkswagen and Sweden’s Volvo plants in Kaluga, Russia.
The 120 miles of the Kaluga region which is located southwest of Moscow said it receives more than $15b in investment since 2006 reported Reuters.
Operations in the Volkswagen Group’s plant were suspended in early March as a result of the war. The factory employs 4,200 employees and faced supply issues since the pandemic. However, the latest sanctions imposed resulted in continuing the halt in production.
The Volvo Group also had suspended production which employed 600 people to manufacture trucks.
Stellantis and Mitsubhi’s joint venture PSMA Rus plant, which employs 2,000 people may also halt production as the manufacturer is facing issues in production due to a lack of parts as a result of both the pandemic and increased sanctions according to Stellantis’ CEO.
Prior to the war and sanctions, the pandemic shrunk the companies’ production output. Russian car sales had reduced to 1.67m units in 2021.