By now it’s no question that the ill-effects of Russia’s military activities in Ukraine are being felt worldwide. From skyrocketing prices of petroleum products to the makings of a much worse war, everyone is called to action.
While not expected to put up arms, various countries have already imposed bans and economical shutdowns of their ties with Russia. This being Autoindustriya.com, we’re here to look at the list of the automotive manufacturers that have (so far) pulled out their businesses in Russia.
Being literal neighbors, European manufacturers BMW, Jaguar, Land Rover, Aston Martin, Volvo, Ferrari, Mercedes-Benz, and Daimler Truck, and the entire Volkswagen Group made up by Volkswagen, Audi, Skoda, Porsche, and Bentley, were quick to act on bans and ceasing business relations.
Daimler Truck was quoted to have said “We have decided to discontinue our business activities in Russia with immediate effect until further notice”. On the same token, BMW despite its rise in sales in Russia has pulled the plug as well. Both exports into Russia and manufacturing operations have also stopped until further notice.
Brands from the United States have done the same as well. Both Ford Motor Company and General Motors have since pulled out of Russia in response to the ongoing violence. With sales of both their Chevrolet and Cadillac brands being halted, GM’s absence will be felt mainly by a rather big Moscow-based national sales company.
As for Ford, though their presence in Russia is not as large, they have decided that along with stopping operations, they will also donate to Ukrainian refugees. Ford also said, “While we don't have significant operations in Ukraine, we do have a strong contingent of Ukrainian nationals working at Ford around the world and we will continue to support them through this time".
A big chunk of losses in Russia’s auto industry also comes from neighboring Asian manufacturers. Stellantis, Honda, Mazda, Mitsubishi, Toyota, Nissan, and Hyundai have already severed ties with Russia as of this writing. Whether it is with exportation or production of vehicles and parts, these brands will not be operating in Russia for the time being.
Toyota is a pretty major player in the country, but even after selling about 98,000 units last year – that represents a local market share of around 5.9 % - the Japanese brand did not hesitate in calling back its nationals and halting production operations altogether.
Renault is the latest to act on the ongoing crisis. Given that the French manufacturer has a majority stake in AvtoVaz (a local Russian automotive manufacturer), it took them some time to decide to temporarily stop its operations, but this is mainly due to what is seen as supply and logistical issues. Understandably, their tie-up may make it more difficult for them to move, but it seems that for the majority, the decision was a very easy one to make.
How then, does this affect us all? It is known that this is all a means to put pressure on Vladimir Putin to cease all military activities. When it stops, then both Ukraine and Russia can start rebuilding. As its primary effect, the continued increase in petroleum product prices may also stabilize to more affordable levels the world over. For both Russia and the manufacturers that pulled out, they can all (eventually) start going back to business-as-usual. And these are only the things we can see on the surface.
War: what is it good for? Absolutely nothing.