Production

Mitsubishi stops production at the Russian plant it co-manages with Stellantis

The logo of Mitsubishi Motors Corp is displayed at the company’s showroom in Tokyo, Japan January 18, 2019. REUTERS/Issei Kato

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April 8 (Reuters) – Japanese carmaker Mitsubishi Motors (7211.T) said on Friday it had halted production at a Russian van plant in Kaluga it owns with Stellantis (STLA.MI) until further notice. order, joining other major automakers that have shut down operations in Russia.

“Due to logistical difficulties, vehicle exports 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 imposing additional sanctions on 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 began on February 24.

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Stellantis, the world’s fourth-largest automaker, said in late March it would soon close the Kaluga plant as it ran out of parts. Read more

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

The company, which had previously suspended all car exports to Russia as well as all imports from Russia, was not immediately available for comment on Friday.

Stellantis also said it was moving its current production to Western Europe and freezing plans for additional investments in Russia, while keeping van production in Kaluga only for the local market.

New car sales in Russia fell 62.9% year-on-year in March, contracting for a ninth consecutive month, as the industry faced a severe shortage and soaring prices caused by a sharp drop in the ruble and disrupted logistics. Read more

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Reuters reporting; Editing by Kevin Liffey and Chizu Nomiyama

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