The Volkswagen Group decided to stop vehicle production in Russia until further notice, a week after Russian President Vladimir Putin invaded Ukraine.
Europe’s largest automaker said in a statement emailed to Bloomberg that the move affects VW factories in Kaluga, near Moscow, and Nizhny Novgorod.
Vehicle exports to Russia will also stop with immediate effect, joining a number of automakers including Mercedes-Benz and BMW.
Mercedes, a brand owned by Daimler AG, said it will stop production at its Russian plant and suspend the export of passenger cars and vans to the country, after Western countries imposed sanctions on the country following Russia’s invasion of Ukraine.
The automaker’s plant near Moscow builds the E-Class sedan and SUVs derived from it.
BMW also halted production at a factory in the Russian exclave of Kaliningrad and suspended vehicle exports to the country.
But for BMW, the effects of Russia’s invasion of Ukraine have reached other of its plants in Europe as the geopolitical conflict affected deliveries of key components. Vehicle production in Munich and Dingolfing, both in Germany, will stop next week, as will production at Mini’s factory in Oxford, England.
Engine production at the BMW factory in Steyr, Austria will also be discontinued.
Almost all of the premium carmaker’s European output is being affected by the crisis in Ukraine. BMW plants in the United States, China and Mexico are not affected because they have different suppliers.
With information from Bloomberg
