VW Group stops Russia business

style="float: right; margin-bottom: 10px; font-weight: 600;"Thu 3rd Mar, 2022

Volkswagen is suspending its Russian business because of the war against Ukraine. "Against the backdrop of the Russian attack, the group's board of management has decided to halt production of vehicles in Russia until further notice," the Wolfsburg-based company said Thursday. Exports from Europe's largest car group to the Russian Federation would also now be "halted with immediate effect."

VW operates its own car production in Kaluga, southwest of Moscow, and in Nizhny Novgorod, further east. Production will now be stopped at both sites for the time being, the company announced.

Likewise, no more cars from VW Group brands are to be exported to Russia. "With the extensive interruption of business activities, the Group's Board of Management is drawing the consequences from the overall situation, which is characterized by strong uncertainty and the current turmoil," the Wolfsburg-based company said.

In other countries, the consequences of the attack on Ukraine had already slowed down the production of carmakers - also at VW. For example, following the Corona and chip crises, there are further major work stoppages at plants such as Zwickau, Wolfsburg and Hanover due to a lack of supplier parts from western Ukraine, for example. "Our task force continues to work on solutions across divisions and brands," was the latest statement.

"The war in Ukraine dismays us all," Purchasing Chief Murat Aksel, Chief Human Resources Officer Gunnar Kilian and Works Council Chairwoman Daniela Cavallo wrote in a letter to the workforce. "After the Russian attack, Volkswagen hopes for a quick cessation of hostilities and a return to diplomacy." CEO Herbert Diess had already reacted to the start of the war last week "with great concern and dismay."

Photo by Julian Hochgesang

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