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March 24, 2022 12:34 PM

Stellantis keeps Russia van plant open as Renault shuts

Stellantis says its factory in Kaluga is running at a reduced output, as foreign companies face pressure to withdraw over the war in Ukraine.

Bloomberg
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    Opel Stellantis vans Kaluga Russia

    Opel vans being assembled at Stellantis' factory in Kaluga, Russia. The factory also builds models for Citroen and Peugeot, and was set to begin production for Fiat.

    Stellantis is continuing to build vans at its factory near Moscow, even as rival Renault has bowed to pressure to exit its sizable operations in Russia.

    Stellantis's Kaluga factory is operating at a low level, a spokeswoman said Thursday, though the plant may have to shut down because of logistical and supply problems. 

    After weeks of mounting scrutiny culminating in a public chiding from President Volodymyr Zelensky of Ukraine, Renault said on Wednesday that it is suspending operations at its Moscow car plant and is considering the future of its Russian venture AvtoVAZ,  which owns Russia's best-selling car brand, Lada.

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    Russia says it will decide on future use of Renault's Moscow plant next week
    How Russia's invasion of Ukraine is impacting automakers

    Renault's decision lagged moves by Volkswagen Group, BMW and Ford Motor to suspend operations at local factories. 

    With less at stake than Renault in Russia, Stellantis CEO Carlos Tavares said earlier this month that the maker of brands including Jeep, Peugeot, Opel and Fiat would halt exports and imports to and from Russia.

    Tavares said Stellantis could move some van production from the Kaluga plant, which it shares with Mitsubishi, to van factories in Hordain, France, and Luton, England.

    Tavares has said Russia accounts for 20 million to 30 million euros ($33 million) of profit annually, making any impact on the automaker's overall operations negligible. 

    The Kaluga plant, about 150 km (93 miles) southwest of Moscow, builds about 11,000 commercial vehicles a year.

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