Mercedes-Benz, Volkswagen Halt Russia Production, Exports -- 2nd Update
March 03 2022 - 7:20AM
Dow Jones News
By Kim Richters and Joshua Kirby
German car makers Mercedes-Benz Group AG and Volkswagen AG are
stopping exports of vehicles to Russia and are ceasing Russia-based
production until further notice, as a rising number of companies
withdraw business from the country after it invaded Ukraine.
Volkswagen, owner of brands like Audi and Skoda, said it has
decided to stop production at its Kaluga and Nizhny Novgorod
plants.
"All affected employees in Russia will receive short-time
working benefits, paid by Volkswagen," the car maker said on
Twitter on Thursday.
It has previously warned that it may shutter its flagship plant
in Germany later this month because it can't get parts from
suppliers in Ukraine.
Meanwhile, Mercedes-Benz said late Wednesday that is suspending
the export of passenger cars and vans to Russia, and halting local
manufacturing. It said it is still working with suppliers in
Ukraine, which provide components for the production of its
vehicles, and is closely monitoring the situation.
While all of its plants are currently operating, the auto maker
said it will temporarily adjust some shifts at its plant in
Sindelfingen, Germany, next week due to the supply-chain
issues.
Mercedes-Benz's spun-off commercial-vehicles business Daimler
Truck Holding AG has also suspended all business activities in
Russia. It recently dismissed media reports that it was
contributing parts to the military-vehicle production of Russian
truck maker Kamaz, saying the truck parts supplied by Daimler Truck
were strictly for non-military vehicles. Mercedes-Benz holds a 15%
stake in Kamaz.
Luxury-vehicle peer BMW AG also said it had stopped vehicle
exports to Russia and would stop assembly of vehicles in
Kaliningrad. Apart from German vehicle manufacturers, French peer
Renault SA has said it temporarily shut a plant near Moscow, citing
logistical problems.
William Boston contributed to this story.
Write to Kim Richters at kim.richters@wsj.com and Joshua Kirby
at joshua.kirby@wsj.com.
(END) Dow Jones Newswires
March 03, 2022 07:05 ET (12:05 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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