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GM and other automakers suspend some operations in Russia after invasion

GM and other automakers suspend some operations in Russia after invasion

Feb 28 (Reuters) – Global car and truck makers including U.S. automaker General Motors Co (GM.N) and Germany’s Daimler Truck (DTGGe.DE) on Monday suspended some operations in Russia following the invasion of Ukraine by this country.

Russian forces invaded Ukraine last week, marking the biggest state-on-state attack in Europe since World War II. Many companies have slowed down their activities in Russia as a result of Western sanctions against Russia.

Energy giant BP Plc, Russia’s biggest foreign investor, abruptly announced over the weekend that it was dumping its 20% stake in state-controlled Rosneft (ROSN.MM) for a cost up to $25 billion. Read more

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On Monday, GM announced it would suspend all vehicle exports to Russia until further notice. The Detroit company has no factories in Russia, sells only about 3,000 vehicles there a year and has limited supply chain exposure.

“Our thoughts are with the people of Ukraine at this time,” Gm said in a statement. “The loss of life is a tragedy and our overriding concern is the safety of people in the area.”

Swedish automaker Volvo Cars (VOLCARb.ST) has announced it will suspend shipments of cars to the Russian market until further notice, becoming the first international automaker to do so as sanctions against the invasion continue. to weigh. Read more

In a statement, the company said it made the decision because of “potential risks associated with trading materials with Russia, including EU and US sanctions.”

“Volvo Cars will not deliver any cars to the Russian market until further notice,” he said.

A Volvo spokesman said the automaker exports vehicles to Russia from factories in Sweden, China and the United States.

Volvo sold around 9,000 cars in Russia in 2021, based on industry data.

Also on Monday, Volkswagen (VOWG_p.DE) in Russia temporarily suspended car deliveries to dealerships until further notice. “Deliveries are to resume as soon as the effects of the sanctions imposed by the European Union and the United States have been clarified,” a VW spokesman said.

VW previously said it would halt production for a few days this week at two German plants after a delay in manufacturing parts in Ukraine. Read more

Daimler Truck announced on Monday that it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truckmaker Kamaz, which is 47% owned by Russian state conglomerate Rostec. Read more

Mercedes-Benz Group (MBGn.DE) is also exploring legal options to divest its 15% stake in Kamaz as soon as possible, the Handelsblatt newspaper reported.

A Mercedes spokesperson said business activities should be reassessed in light of current events.

Mercedes-Benz Group (MBGn.DE), formerly Daimler AG, was the parent company of Daimler Truck before the truckmaker split.

U.S. truck engine maker Cummins Inc (CMI.N) declined on Monday to discuss its relationship with Kamaz, but said it expected “some impact” on its business in Russia without providing further details. . In 2006, Cummins agreed to produce engines for Kamaz’s fleet of trucks, buses and other heavy machinery. Read more

Kamaz media representatives could not immediately be reached for comment.

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Swedish truckmaker AB Volvo (VOLVb.ST) said it had halted all production and sales in Russia due to the crisis. It makes about 3% of its sales in Russia and has a factory there. Read more

“We now have a bit more clarity on sanctions and security in the region … that means all operations in Russia are coming to an end,” a company spokesman told Reuters, adding that the measures would apply. until further notice.

Officials at U.S. automaker Ford Motor Co (FN) could not be reached for comment on Monday.

Ford, which has a 50% stake in three Russian factories, had previously said it was working to manage any impact on its operations, but its primary focus was the safety of its employees in the region.

U.S. aircraft maker Boeing (BA.N) said on Monday it had suspended operations at its Moscow training campus and temporarily closed its Kyiv office.

Separately on Monday, Toyota Motor Corp (7203.T) said it would suspend factory operations in Japan after a supplier of plastic parts and electronic components was hit by a suspected cyberattack. Read more

No information was immediately available on the identity of the author of the possible attack, nor on his motive. The attack comes just after Japan joined Western allies in suppressing Russia after it invaded Ukraine, although it’s unclear if the attack was related.

Japanese government officials said they would investigate whether Russia was involved.

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Writing by Ben Klayman in Detroit, additional reporting by Jan Schwartz in Hamburg and Bianca Flowers in New York Editing by Nick Zieminski

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