Volkswagen, Mercedes-Benz announce to halt activities in Russia until further notice

Volkswagen, owner of brands like Audi and Skoda, announced it has decided to stop production at its Kaluga and Nizhny Novgorod plants.

German car producers Mercedes-Benz Group AG and Volkswagen AG are ceasing exports of automobiles to Russia and are stopping Russia-based generation until further information, as a rising number of firms withdraw industry from the nation after it attacked Ukraine.

Volkswagen, the owner of brands like Audi and Skoda, announced it has decided to stop generation at its Kaluga and Nizhny Novgorod plants. “All influenced employees in Russia will earn short-time working benefits, paid by Volkswagen,” the carmaker told on Twitter on Thursday.


It has formerly instructed that it may shutter its flagship plant in Germany later this month as it can’t get ingredients from suppliers in Ukraine.

However, Mercedes-Benz announced late Wednesday that is halting the export of passenger cars and vans to Russia and stopping local manufacturing. It told it is still functioning with suppliers in Ukraine, which give components for the generation of its vehicles, and is closely scanning the situations.

While all of its plants are presently regulating, the automaker announced it will temporarily modify some shifts at its plant in Sindelfingen, Germany, next week because of the supply-chain problems.

Mercedes-Benz’s spun-off commercial-vehicles business Daimler Truck Holding AG has also cancelled all business activities in Russia. It lately dismissed media reports that it was providing parts to the military-vehicle creation of Russian truck maker Kamaz, announcing the truck parts supplied by Daimler Truck were exactly for non-military vehicles. Mercedes-Benz carries a 15% stake in Kamaz.

Luxury-vehicle peer BMW AG also announced it had stopped automobile exports to Russia and would halt the assembly of vehicles in Kaliningrad. Other than German vehicle manufacturers, French peer Renault SA has announced it temporarily shut a plant near Moscow, referring to logistical difficulties.