Automaker Stellantis on Tuesday said it is suspending auto production at its Russian plant because of logistical difficulties and sanctions imposed on the country.
The world’s fourth-largest automaker, which sold Peugeot, Citroёn, Opel, Jeep, and Fiat brands in Russia, has only 1% of the country’s automobile market.
It runs a van-making plant in Kaluga which is co-owned with Japanese automaker Mitsubishi, which in turn halted production at the facility previously this month.
“Given the rapid daily boost in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its workers,” Stellantis said.
The plant employs 2,700 individuals.
The automaker will continue to pay salaries through a regional downtime scheme and by using expected vacation periods.
The automaker is unsure about how long the stoppage would last.
