Stellantis will transfer production of vans in Russia to Western Europe and has frozen planned investments in the Russian operation after the invasion of Ukraine, the group’s CEO, Carlos Tavares, announced on Friday.
“New investments in Russia are no longer on the table,” the Portuguese leader told a press conference.
The announcement comes a day after the automaker suspended all imports and exports of vehicles to and from the Russian market, where it has a plant in Kaluga in partnership with Mitsubishi.
The move marks a 180 degree turn from the plan, announced in January, to make Russia an export hub to meet the strong demand for light commercial vehicles in Western Europe.
Earlier in the year, Stellantis reported that production at the Kaluga plant had doubled in 2021 compared to the previous year.
At the time, the car giant intended to export the Peugeot Expert, Opel Vivaro and Citroën Jumpy models from Kaluga to European markets.
The Kaluga plant has an annual capacity of 125,000 vehicles and started production of vans, then for PSA, in 2017.