Auto and truck makers suspend some business in Russia following invasion

Sumitomo Electric Industries

28/02/2022 15:26

By Ben Klayman
    Feb 28 (Reuters) - Global auto and truck makers, including
Sweden's Volvo Cars VOLCARb.ST  and Germany's Daimler
Truck DTGGe.DE , on Monday suspended some business in Russia
following that country's invasion of Ukraine.    
    Russian forces invaded Ukraine last week, marking the
biggest attack by one state against another in Europe since
World War Two. Many firms have idled operations in Russia
following Western sanctions against Russia. 
    Energy giant BP Plc  BP.L , Russia's biggest foreign
investor, abruptly announced over the weekend it was abandoning
its 20% stake in state-controlled Rosneft  ROSN.MM  at a cost of
up to $25 billion.  urn:newsml:reuters.com:*:nL8N2V21LU urn:newsml:reuters.com:*:nL1N2V20PR
    On Monday, Swedish automaker Volvo Cars said it would
suspend car shipments to the Russian market until further
notice, becoming the first international automaker to do so as
sanctions over the invasion continue to bite.  urn:newsml:reuters.com:*:nL1N2V313Z
    In a statement, the company said it had made the decision
because of "potential risks associated with trading material
with Russia, including the sanctions imposed by the EU and US."
    "Volvo Cars will not deliver any cars to the Russian market
until further notice," it said.
    A Volvo spokesman said the carmaker exports vehicles to
Russia from plants in Sweden, China and the United States.
    Volvo sold around 9,000 cars in Russia in 2021, based on
industry data.
    Earlier on Monday, RIA news agency reported Volkswagen
 VOWG_p.DE  had temporarily suspended deliveries of cars already
in Russia to local dealerships, citing a company statement. VW
had no immediate comment when contacted by Reuters.  urn:newsml:reuters.com:*:nR4N2UT07D
    VW previously said it would halt production for a few days
this week at two German factories after a delay in getting parts
made in Ukraine.  urn:newsml:reuters.com:*:nL8N2V079W
    Daimler Truck said on Monday it would freeze its business
activities in Russia with immediate effect, including its
cooperation with Russian truck maker Kamaz.  KMAZ.MM 
 urn:newsml:reuters.com:*:nL8N2V33DC
    Mercedes-Benz Group  MBGn.DE  is also looking into legal
options to divest its 15% stake in Kamaz as quickly as possible,
the Handelsblatt newspaper reported.
    A Mercedes spokesperson told Reuters business activities
would have to be re-evaluated in light of the current events.
    Mercedes-Benz Group  MBGn.DE , formerly Daimler AG, was the
parent company of Daimler Truck before the truck maker was spun
off.
    Meanwhile, Swedish truck maker AB Volvo  VOLVb.ST  said it
has halted all production and sales in Russia due to the crisis.
It generates about 3% of its sales in Russia and has a factory
there.  urn:newsml:reuters.com:*:nL8N2V33BO
    "We now have a bit more clarity on sanctions and security in
the region ... this means all operations in Russia end," a
company spokesperson told Reuters, adding the measures would
apply until further notice.   
    Officials with U.S. automakers Ford Motor Co  F.N  and
General Motors Co  GM.N  could not be reached to comment on
Monday.
    Ford, which has a 50% stake in three Russian plants,
previously said it was working to manage any impacts on its
operations but its primary focus was the safety of its employees
in the region.    
    GM, which only sells a small amount of vehicles in Russia,
previously said has limited supply-chain exposure in the region
and was working to ensure the safety of employees.
    Last week, several automakers and suppliers, including
Renault  RENA.PA  and tire maker Nokia Tyres  TYRES.HE , idled
production following the invasion. Parts makers Aptiv  APTV.N 
shifted high-volume work out of Ukraine, and Japan's Sumitomo
Electric Industries  5802.T  suspended operations there.
 urn:newsml:reuters.com:*:nL1N2V01N2
    Separately on Monday, Toyota Motor Corp  7203.T  said it
would suspend factory operations in Japan after a supplier of
plastic parts and electronic components was hit by a suspected
cyberattack.  urn:newsml:reuters.com:*:nL1N2V30UK
    No information was immediately available about who was
behind the possible attack or the motive. The attack comes just
after Japan joined Western allies in clamping down on Russia
after it invaded Ukraine, although it was not clear if the
attack was at all related.
    Japanese government officials said they would investigate
whether Russia was involved.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FACTBOX-International companies with exposure to Russia    
 urn:newsml:reuters.com:*:nL1N2UZ1S2
WRAPUP 8-Russia hikes rates, introduces capital controls as
sanctions bite     urn:newsml:reuters.com:*:nL1N2V301U
WRAPUP 5-Western firms head for the exit in Russia as sanctions
tighten     urn:newsml:reuters.com:*:nL8N2V21LU
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Writing by Ben Klayman in Detroit, additional reporting by Jan
Schwartz in Hamburg
Editing by Nick Zieminski)
 ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))