Volkswagen Suspends Vehicle Production In Russia And Exports

After the invasion of Ukraine by Russia, Volkswagen AG announced it will suspend its vehicle exports to that country until further notice. The company is also halting production at its facilities in Kaluga and Nizhny Novograd in addition to other facilities.

Volkswagen said it had been shocked by the news of the war in Ukraine. The company is hopeful that a ceasefire will be reached and diplomacy will resume. Volkswagen says it remains convinced that an end to the conflict can only be found in accordance with international law. During this time of heightened uncertainty and upheaval, the Executive Board is reviewing the possible consequences of the extensive interruptions in Russian business activities.”

Russia was among the 38,900 Volkswagen vehicles delivered in January to its customers in Central and Eastern Europe. Compared to the previous year, the company delivered about 22% fewer vehicles.

Volkswagen formed a crisis management team as soon as Russia invaded Ukraine. The initial hostilities caused a bottleneck in deliveries for the company’s Ukraine-based suppliers, the company previously told FOX Business.

A temporary suspension of electric vehicle production had already been imposed at the company’s plants in Germany’s Zwickau and Dresden prior to its latest announcement. Volkswagen Commercial Vehicles has warned that it expected production restrictions at its Wolfsburg plant and production stops at its Hanover plant.

Along with Volkswagen, BMW and Mercedes-Benz have both announced that their vehicle exports into Russia and production in Russia are to be suspended. Until further notice, Daimler Truck AG has also decided to discontinue all its business activities in Russia.

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