The fourth largest automaker in the world, Stellantis plans to move their electric car factory from Russia to western Europe. Stellantis will also suspend all planned investments in Russia.
Stellantis Chief Executive Carlos Tavares said Stellantis would move van production in Russia at this time to western Europe. They will also freeze plans for more investment in the country as a consequence of the invasion of Ukraine.
Stellantis has suspended all exports and imports of vehicles with Russia. Where Stellantis operates a van manufacturing plant in the city of Kaluga, in partnership with Mitsubishi.
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The decision reverses an earlier plan, outlined in January, to use Russia as an export hub to meet the strong demand for vans in Western Europe. “In this context, new investment in Russia is not on the table,” said Tavares as reported by Autoblog, Saturday (12/3/2022).
The Ukrainian crisis has also raised prices for metals used in cars, from aluminum in bodywork to palladium in catalytic converters. There has also been an increase in high-grade nickel in electric vehicle batteries, increasing pressure on the industry, which already faces high costs.
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After the semiconductor supply problems last year, Tavares said, the electric car industry will be hit again with a shortage of nickel raw material for electric vehicle batteries. “Stellantis is not hurting too much as long as our supply base is not concentrated in Eastern Europe,” he said.
