Major Carmakers Ban Sales In Russia

Industry News / 9 Comments

The growing list includes Volvo and General Motors.

Russia's invasion of Ukraine is having far-reaching effects on multiple industries. Large corporations and countries as a whole continue to impose sanctions on Russia and the automotive and motorsport industries have started to respond. Already, the start of the Formula One season has been affected; yesterday, the FIA announced that the Russian Grand Prix in Sochi had been canceled. Individual carmakers are now making their stance clear and electing to suspend shipments to Russia amid the ongoing war. The group includes Volvo Cars, General Motors, Volkswagen, and German truck maker Daimler Truck.

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"Volvo Cars will not deliver any cars to the Russian market until further notice," said the company in a statement. Volvo exports vehicles to Russia from plants in the US, China, and Sweden, but the Swedish company only sold around 9,000 cars in Russia last year.

Volvo's XC90 and XC60 SUVs are among its top sellers in the region. The company cited "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and the US."

Joining Volvo is Volkswagen, which has temporarily halted deliveries to local dealerships for models already in Russia. Daimler Truck has a relationship with Russian truck maker Kamaz, but it still decided to freeze business activities in Russia with immediate effect.

The list doesn't end there, even for automakers with a small presence in Russia. A tweet by Nexta TV on February 25 suggests that BMW, Audi, Land Rover, General Motors, and Citroen have also suspended shipments to Russia.

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GM doesn't have a plant in Russia and only sells approximately 3,000 vehicles there per year, including the Chevrolet Tahoe and Cadillac XT5, but has decided to stop all exports to Russia until further notice. "Our thoughts are with the people of Ukraine at this time," said GM in a statement to Reuters. "The loss of life is a tragedy and our overriding concern is for the safety of people in the region."

It remains to be seen if other automakers with more to lose will follow suit and confirm that much in the days ahead. For example, Ford has a 50% stake in three Russian plants. The company is said to be focusing on the safety of its employees in the region and is working to manage any operational impacts, but it hasn't made the same strong move as others like Volvo and GM just yet. Until the senseless invasion of Ukraine stops, we expect many other automakers to stop activities in Russia.

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Source Credits: Reuters

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