Stellantis has suspended production at its Russian plant, which employs 2,700 people, over logistical difficulties and sanctions imposed on Moscow.
The world's fourth-largest automaker runs a van manufacturing plant in Kaluga, approximately 125 miles southeast of Moscow, co-owned with Japanese carmaker Mitsubishi, which halted production at the plan earlier this month.
"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," Stellantis said in a statement.
The company plans to pay affected employee salaries through a local downtime scheme and by using anticipated vacation periods, Stellantis told Reuters.
Stellantis had already suspended vehicle exports and imports with Russia, following Moscow's invasion of Ukraine, and moved production to western Europe. It also froze plans for more investments in the country.
General Motors Co. announced plans to continue its suspension of business in Russia amid the conflict and international sanctions.
The U.S. automaker reported plans to lay off most of its 66 employees there and provide them with separation packages. GM does not have plants in Russia and only sold about 3,000 vehicles annually there prior to the suspension.
Originally posted on Auto Dealer Today
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