With the rising tensions between Russia and Ukraine, General Motors will suspend vehicle exports to Russia. This is in tune with the U.S. government’s sanctions on the country. Earlier Volvo made a similar decision to stop all its vehicle shipments to the Russian Market. As of today, GM does not own a manufacturing facility in the country. However, it does operate a national sales company for Russia and CIS markets with vehicles sourced from North America and South Korea. As per reports, GM sells close to 3,000 vehicles annually in the country. The U.S. government is taking all the measures to put the Russian economy on the backfoot.
As per reports, soon, Volkswagen will also make a similar decision. Following the directives of the EU, Volkswagen and Renault have halted their production in Russia, at least for a week. Soon other car manufacturers like Audi, Jaguar Land Rover, BMW, Mercedes-Benz and Citroen could follow.
As mentioned, Volvo has already halted its shipment to the country, including both cars and trucks. In 2021, the company had sold close to 9,000 vehicles in the country. But, now Volvo, along with GM, will not deliver any cars to the Russian market until further notice. In the motorcycle segment, Harley Davidson has also suspended its business in Russia. Mercedes-Benz could soon divest its 15 per cent stake in Russian truck maker Kamaz, currently, they are evaluating all the options.
The automotive industry plays a critical role in the Russian economy. Currently, this industry employs close to 6,00,000 personnel that making for about 1 per cent of the total population. As per 2018 data, Russia produced close to 17,67,674 units. This takes the country to the 13th position among car-producing nations in 2018. The major players in the market are AvtoVAZ and GAZ.
Also Read: Manufacturing an EV results in 70% more emissions – Volvo.