The German automaker joins a growing list.
The current conflict in Ukraine has impacted the global economy in a major way, with private companies and governments punishing Russia for its violent invasion of a sovereign nation. Russia's actions have huge consequences for its automotive industry alone, like Porsche suspending Macan and Panamera production based on parts shortages from Ukraine. Several automakers have already suspended business with Russia, including Aston Martin, Ford, GM, Jaguar Land Rover, and Volvo with Volkswagen becoming the latest to show support for Ukraine.
Following Russia's invasion of Ukraine, the Group Board of Management of Volkswagen AG has decided to stop the production of vehicles in Russia until further notice. This includes VW's two Russian factories in Kaluga and Nizhny Novgorod. VW will also stop exporting cars to Russia effective immediately.
"The Volkswagen Group has received the news about the war in Ukraine with great dismay and shock. Volkswagen continues to hope for a cessation of hostilities and a return to diplomacy. We are convinced that a sustainable solution to the conflict can only be found on the basis of international law," the company said in a statement.
The Kaluga plant currently builds the 2022 Volkswagen Tiguan, Polo, and Skoda Rapid, and assembles the Audi Q7 and Q8. VW's Nizhny Novgorod currently builds the Taos and three Skoda models: the Kodiaq, Karoq and Octavia. This news will not impact VW in the US, as our Tiguan and Taos models are built in Puebla, Mexico.
VW's announcement is the latest hit to Russia's car industry. We've already witnessed Ukrainians hacking Russian charging stations, Tesla offering free charging to Ukrainian owners, and the cancelation of the Russian F1 Gran Prix, which was set to be held on September 23.
With so many automakers already cutting ties with the Russian market, we wouldn't be surprised if companies band together for an industry-wide ban. Until Russia leaves Ukraine, its car market will be seriously crippled.