From Harley to Volvo, auto brands slam brakes on Russia
The crippling economic sanctions on Russia after Moscow invaded Ukraine last week are expected to have major ramifications for the country. The action against Russia are widespread and severe, and joining the ranks of various multi-national companies are automotive brands that have decided various and varying actions.
American auto brand and Swedish car manufacturer GM and Volvo were among the first to announce temporary suspension of business in Russia. GM in a press statement informed it is suspending vehicle exports to the country. "Our thoughts are with the people of Ukraine at this time," the statement read. "The loss of life is a tragedy and our overriding concern is for the safety of people in the region." GM sells around 3,000 cars in Russia per annum.
Volvo too has decided to halt car shipment to Russia for now. Volvo sells around 9,000 car units each year in the country. AB Volvo too has taken a similar decision for its trucks, while suspending truck production in Russia as well.
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Daimler Truck has frozen business activities in Russia and is also re-looking at its cooperation with Russian truck maker Kamaz. According to Handelsblatt newspaper, Mercedes-Benz Group is looking into legal options to divest its 15% stake in Kamaz as soon as is possible.
Volkswagen is another German brand that has temporarily halted supply of its cars to dealers in Russia. "Deliveries are to resume as soon as the effects of the sanctions imposed by the European Union and the United States have been clarified," a VW spokesperson said. There is a delay in getting parts from Ukraine which has promoted VW to temporarily halt production at two of its German facilities.
Ford has not announced any suspension of activity yet but has underlined it is committed to the safety of its employees in the war-affected region. But US premium motorcycle brand has gone ahead to announce a temporary suspension of business activities in Russia and in the supply of its bikes to customers here.