Volkswagen suspends vehicle production in Russia

Due to invasion of Russia over Ukraine, Volkswagen has joined other auto companies who have suspended the vehicle production in the country


Amidst the Russia and Ukraine crisis, auto giant Volkswagen has become the latest auto company to announce that it will be suspending its vehicle exports to Russia until further notice. The decision was made in response to the current crisis in Ukraine due to the Russian invasion. The company also said that it is halting the production at the facilities in Nizhny Novograd and Kaluga.

Volkswagen released a statement that said that it has received the news about Russia’s invasion on Ukraine with dismay and shock and would hope that the situation gets better and things turn in to diplomacy soon. The company has also expressed hopes that a sustainable solution would be found for the conflict with the help of the international law. Talking about the business figures by Volkswagen, the company delivered 38,900 vehicles to the customers in Central as well as Eastern Europe and it includes Russia. The figure had went down to about 22 percent from 2020 when it had delivered more than 50,000 vehicles.

Soon after the Russia’s invasion over Ukraine, Volkswagen formed a crisis management team to look in to the impact that was related to the conflict. Even before the latest announcement, the company had already suspended the vehicle production at the plants in Zwickau and Dresden in Germany. Volkswagen added that it is also looking forward to a possibility of certain restrictions on production at the Wolfsburg plant and a halt in production at the Volkswagen Commercial Vehicles plant located in Hanover.

Part from VW, premium auto giants including Mercedes Benz and BMW had announced that it would suspend the vehicle exports and production in Russia. Even Daimler Truck AG has also suspended the business activities in Russia till the situation comes under control. On the other hand auto giant Ford has also notified is partner Sollers that it would be suspending its operations in the country. General Motors and Volvo have already suspended vehicle exports until further notice.

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