Mitsubishi halts production at the Stellantis plant in Russia

Mitsubishi halts production at the Stellantis plant in Russia

The Mitsubishi Motors logo next to the company’s electric car at the auto show in Tokyo

(Reuters) – Japanese carmaker Mitsubishi said on Friday it was suspending production at a car plant it co-owns with Stellantis in the Russian city of Kaluga.

“Due to logistical difficulties, vehicle shipments and parts supply to Russia have been suspended since March,” Mitsubishi said in a statement.

Japan has joined the United States and other allies in enforcing sanctions against Russia, including freezing the assets of the country’s leaders and three financial institutions, to punish Russia for what Moscow calls a “special military operation” in Ukraine. , which started on February 24. .

Stellantis, the world’s fourth-largest carmaker, said at the end of March that it would have to close the Kaluga plant soon because it was running out of parts.

It was not immediately clear whether Stellantis also ceased operations in Kaluga.

The company, which had already suspended all shipments of cars to Russia, as well as all imports from the country, was not immediately available for comment.

Stellantis also previously said it was moving current production to Western Europe and freezing plans for further investment in Russia, keeping van production in Kaluga for the domestic market only.

New car sales in Russia fell 62.9 percent in March year-on-year, the ninth straight month of contraction, as the industry faces severe shortages and rising prices caused by the ruble’s sharp decline and supply chain disruptions.