Automotive Plants Screech to a Halt in Russia Amid Ukraine Invasion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Some automotive industry giants have announced plans to suspend or shift production activities in Russia, due to the military invasion of Ukraine.

Finnish tire manufacturer Nokian Tyres plc was one of the first to react. The company announced on February 25 that it was moving production of some products from Russia to its native Finland and the U.S. On February 28, Nokian withdrew its financial plan for the coming year due to the invasion. The producer said the events in Ukraine have led to great uncertainty about the Russian financial system and the exchange rate of the Russian ruble. But Nokian is not the only company to take such action.

Groupe Renault (Boulogne-Billancourt, France), which has strong exposure to the Russian market, recently said it would suspend some operations at its car assembly plants in Russia, due to logistical bottlenecks that have caused parts shortages. It was unclear whether the supply-chain issues were caused by the war in Ukraine.

In turn, Renault-controlled AvtoVAZ was suspending operations at some assembly lines for a few days, according to news media reports.

Daimler Truck AG (Leinfelden-Echterdingen, Germany), also announced that it was suspending business activities in Russia.

Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Plant Database includes profiles of 66 operational automotive plants in Russia. Subscribers can click here for the list.

Auto component supplier Sumitomo Electric Industries Limited (Osaka, Japan) employs about 6,000 people in Ukraine for the production of wiring harnesses. The company said it suspended operations at its Ukraine plants and was in talks about potential deliveries from elsewhere.

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