The Stellaris automobile group, owner of the Talbot brand, has just announced the imminent closure of its main production site in Russia. One reason pushed him to make this decision: the critical lack of parts due to the global shortage of components and the difficulties caused by the conflict in Ukraine.
As you may know, the war in Ukraine has already impacted many actors, in Europe and around the world. One fears for example an inevitable increase in the price of the automobile because of the conflict. Indeed, both Russia and Ukraine export large quantities of components to European manufacturers. And unsurprisingly, these deliveries have come to a serious halt since the beginning of the war.
Added to this is the global shortage of components, which continues to plague after several years. In this regard, we recently learned that one of the main Russian tank manufacturers has just suspended production, due to EU trade sanctionsbut also because of the lack of components.
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Automotive group Stellantis closes its plant in Russia
However, our colleagues from the site Les Echos Investir inform us that another company will stop its activities in Russia. This is the Stellantis automotive group, a multinational founded in January 2021 and resulting from the merger between the PSA group and Fiat Chrysler Automobiles. Stellantis notably manages several world-famous brands, such as Abarth, Alfa Romeo or Citroën and DS Automobiles. In a statement, the manufacturer announces the imminent closure of its Kaluga utility production sitelocated in central Russia.
The reason ? The critical lack of spare parts, which prevents the manufacturer from continuing its activities. “Very limited production will be discontinued in the near future due to supply issues.” said group CEO Carlos Tavares. Nevertheless, the CEO did not specify whether he feared a depreciation of the value of the site or a possible seizure of the plant by the Russian authorities after the cessation of activities. According to him, the production of the Kaluga site, namely nearly 11,000 vehicles, could be “easily absorbed” by other factories of the group in France and the United Kingdom.
Source: The Echoes Invest
