Stellantis said on Tuesday that it would be following several other automakers in shutting down its plant in Russia due to issues with logistics and ongoing sanctions on the country. The announcement comes after Stellantis’s Chief Executive Officer Carlos Tavares said last month that the facility was also experiencing mass parts shortages and would need to close soon.
Vehicle imports and exports were previously suspended in Russia when the conflict in Ukraine began, and Stellantis said it would indefinitely stop investments in Russia. The Kaluga plant has continued operations until now but was only producing vehicles for domestic sales.
A news release from Stellantis said, “Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its employees.”
The Kaluga-based plant is co-owned by Stellantis and Mitsubishi, which has already halted production there. Stellantis brands such as Jeep, Fiat, and Peugeot make up a small 1% of the Russian market, but the van-building plant has around 2,700 employees, who will reportedly continue to be paid during the shutdown.
Stellantis said it does not know when operations will resume but that “its priority [is] its staff and the return of peace.”
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