Volkswagen is one of three carmakers in the city that have suspended operations due to the effects of the Russian invasion of Ukraine and the impact it has had on the global supply chain. According Yale School of Managementmore than 750 companies have withdrawn from Russia or have restricted their activities since the invasion. “The problems started when we stopped getting spare parts,” said Valery Uglov, who works as a car mechanic at the Volkswagon plant. “We can not really combine a car without spare parts.” Volkswagen, along with Volvo and Stellantis, a Dutch-based manufacturer whose models include Peugeot and Citroen, employs 7,000 people in the city. While all workers are currently receiving at least part of their wages, it is unclear when they will be able to return to work and how foreign companies will then operate in Russia, as it is increasingly isolated from the global market through sanctions. Since Russia invaded its neighbor on February 24, thousands in Ukraine have been killed, cities and towns have been reduced to rubble, and more than five million people have fled abroad. The invasion also disrupted world trade, and as more countries banned Russian energy exports, commodity prices soared. The World Bank predicts that Russia’s GDP will shrink by 11 percent this year. New cars appear parked at the Volkswagen Group Rus factory in Kaluga, Russia, March 30, 2022. (Evgenia Novozhenina / Reuters)
Production has been suspended
In Kaluga, a city of 320,000 people, most of the people who spoke to CBC News said they were not too worried about the car factory layoffs and believed the setbacks would be short-lived. Uglov’s partner, Alexander Abrosimov, has worked for Volkswagen for 12 years and said there are always concerns about employment in the car sector. He said there had been cuts in the early days of the pandemic and that this would be temporary. “It’s good that Europe and the United States are not the whole world,” he said, referring to the fact that most of the sanctions came from the West. “We still have Asia … and I guess we will work with them” In a statement Posted on the Internet, Volkswagen said it had suspended production in Kaluga and Nizhny Novgorod, 400 km east of Moscow, since early March due to the “overall situation” and “great uncertainty and unrest”. The company also cut off exports of its vehicles to Russia. Volkswagen, which has several suppliers in western Ukraine, has said it is fully implementing the sanctions imposed. The statement said that the situation in Ukraine, along with sanctions and sanctions, have made it difficult to transport spare parts and supply. Trains and vehicles have been disrupted and many shipping companies are refusing to stop at Russian ports. Russian Prime Minister Vladimir Putin walks in front of a Volkswagen Tiguan during the opening ceremony of the Volkswagen plant in Kaluga on October 20, 2009. In early March, Volkswagen said it had suspended production in Kaluga due to the Russian invasion of Ukraine. (Natalia Kolesnikova / Reuters)
The car sector is having a hard time
Evgeny Eskov, editor-in-chief of the Moscow-based AutoBusiness Review, told CBC News that the impact of sanctions on Russia’s carmaker was “enormous”. He said most of the country’s passenger car factories are not operating at the moment because Russia’s car industry is closely linked to foreign companies. According to European Business AssociationCar sales in Russia fell by almost 63 percent this March compared to March last year. The Russian government has repeatedly stated that it will innovate and find other suppliers. Speaking to lawmakers in St. Petersburg on April 27, Russian President Vladimir Putin said Russia “will face any crude and often incompetent external constraints” and that many Russian industries are now seeing “good, new and modern opportunities. “ CLOCKS Russia cuts off gas from Poland and Bulgaria:
Russia cuts gas to Poland, Bulgaria in retaliation for support for Ukraine
CBC News Network’s Natasha Fatah speaks with Aurel Braun, Professor of International Relations and Political Science at the University of Toronto. 7:57
But Eskov does not think it will be so easy for Russia to smooth over its supply chain.
He says that while Russia may be able to procure spare parts from a “friendly” country, the challenge will actually be to transport them to Russia.
“Everything will depend on how long the special operation in Ukraine will last,” Eskov said. “It’s clear that factories can not be idle for long, they have to do something.”
French carmaker Renault has a 68 percent stake in Russia’s largest carmaker, AvtoVAZ, which produces the best-selling Lada, but on April 27, Russia’s Commerce Minister said Renault had agreed to sell its stake in Russia. scientific institute for one ruble.
The Commerce Department also said that the Renault plant in Moscow, which produced Renault and Nissan brands, would be handed over to the city government.
Russia has warned that it could expropriate foreign assets if the companies leave Russia, and Volkswagen said in a statement that it was following the talks with concern.
Fear of persecution
A tire factory in Kaluga, owned by multinational manufacturer Continental AG based in Germany, said it had restarted part of its production because it was concerned that local officials might face criminal sanctions. In a statement to CBC News, Marc Siedler, who works in media relations for Continental AG, said the company had taken this step in order to “fulfill its duty to care for employees in Russia” and that Continental’s decision to restart was “not way motivated” by profit. The company will not specify what criminal sanctions it was concerned with, but Russia’s State Duma is considering law plan that could allow prosecutors to prosecute local directors or directors for drafting sanctions In a statement, Continental told CBC it was temporarily resuming production at its Kaluga tire plant because the company was worried its employees could face criminal sanctions if Continental did not meet local demand. (Dmitry Kozlov / CBC)
“We survived on bread and potatoes and we will survive”
However, many Kaluga residents said they were optimistic about the future. In addition to the automotive sector, the city has a number of other factories, including those that produce rail equipment and electronics.
“We have to start producing our own things in these factories,” Viktor Petrovic told CBC News in the city center.
Several residents told CBC News that they had noticed an increase in food prices since the war and that there were shortages of Russian staples, such as sugar and buckwheat, but Petrovich was not too worried.
“In the 1990s we survived on bread and potatoes and we will survive.”
A large Z poster hangs on a building in Kaluga. The letter has become a symbol of support for what Russia calls “its special military operation.” (Dmitry Kozlov / CBC)
In Kaluga, large posters hang on the side of buildings bearing the letter Z, which has become a symbol of support for Russia’s invasion of Ukraine. Like other Russian cities, Kaluga is preparing for Victory Day on May 9, when Russia celebrates its military achievements during World War II.
A billboard with a picture of a decorated military hero stands along one of the boulevards, where a young family stopped to take pictures.
Many in the city feel a strong sense of patriotism, but not a middle-aged woman who stopped talking to CBC News and would only give her first name.
“I do not think anything good is waiting for us,” he said.
“Everyone around me supports the war and says we will survive the sanctions, but I am the complete opposite. I am against the war.”
title: “Foreign Carmakers Pause In Russia Amid Sanctions And Supply Shortages Klmat” ShowToc: true date: “2022-12-06” author: “Rose Thoburn”
Volkswagen is one of three carmakers in the city that have suspended operations due to the effects of the Russian invasion of Ukraine and the impact it has had on the global supply chain. According Yale School of Managementmore than 750 companies have withdrawn from Russia or have restricted their activities since the invasion. “The problems started when we stopped getting spare parts,” said Valery Uglov, who works as a car mechanic at the Volkswagon plant. “We can not really combine a car without spare parts.” Volkswagen, along with Volvo and Stellantis, a Dutch-based manufacturer whose models include Peugeot and Citroen, employs 7,000 people in the city. While all workers are currently receiving at least part of their wages, it is unclear when they will be able to return to work and how foreign companies will then operate in Russia, as it is increasingly isolated from the global market through sanctions. Since Russia invaded its neighbor on February 24, thousands in Ukraine have been killed, cities and towns have been reduced to rubble, and more than five million people have fled abroad. The invasion also disrupted world trade, and as more countries banned Russian energy exports, commodity prices soared. The World Bank predicts that Russia’s GDP will shrink by 11 percent this year. New cars appear parked at the Volkswagen Group Rus factory in Kaluga, Russia, March 30, 2022. (Evgenia Novozhenina / Reuters)
Production has been suspended
In Kaluga, a city of 320,000 people, most of the people who spoke to CBC News said they were not too worried about the car factory layoffs and believed the setbacks would be short-lived. Uglov’s partner, Alexander Abrosimov, has worked for Volkswagen for 12 years and said there are always concerns about employment in the car sector. He said there had been cuts in the early days of the pandemic and that this would be temporary. “It’s good that Europe and the United States are not the whole world,” he said, referring to the fact that most of the sanctions came from the West. “We still have Asia … and I guess we will work with them” In a statement Posted on the Internet, Volkswagen said it had suspended production in Kaluga and Nizhny Novgorod, 400 km east of Moscow, since early March due to the “overall situation” and “great uncertainty and unrest”. The company also cut off exports of its vehicles to Russia. Volkswagen, which has several suppliers in western Ukraine, has said it is fully implementing the sanctions imposed. The statement said that the situation in Ukraine, along with sanctions and sanctions, have made it difficult to transport spare parts and supply. Trains and vehicles have been disrupted and many shipping companies are refusing to stop at Russian ports. Russian Prime Minister Vladimir Putin walks in front of a Volkswagen Tiguan during the opening ceremony of the Volkswagen plant in Kaluga on October 20, 2009. In early March, Volkswagen said it had suspended production in Kaluga due to the Russian invasion of Ukraine. (Natalia Kolesnikova / Reuters)
The car sector is having a hard time
Evgeny Eskov, editor-in-chief of the Moscow-based AutoBusiness Review, told CBC News that the impact of sanctions on Russia’s carmaker was “enormous”. He said most of the country’s passenger car factories are not operating at the moment because Russia’s car industry is closely linked to foreign companies. According to European Business AssociationCar sales in Russia fell by almost 63 percent this March compared to March last year. The Russian government has repeatedly stated that it will innovate and find other suppliers. Speaking to lawmakers in St. Petersburg on April 27, Russian President Vladimir Putin said Russia “will face any crude and often incompetent external constraints” and that many Russian industries are now seeing “good, new and modern opportunities. “ CLOCKS Russia cuts off gas from Poland and Bulgaria:
Russia cuts gas to Poland, Bulgaria in retaliation for support for Ukraine
CBC News Network’s Natasha Fatah speaks with Aurel Braun, Professor of International Relations and Political Science at the University of Toronto. 7:57
But Eskov does not think it will be so easy for Russia to smooth over its supply chain.
He says that while Russia may be able to procure spare parts from a “friendly” country, the challenge will actually be to transport them to Russia.
“Everything will depend on how long the special operation in Ukraine will last,” Eskov said. “It’s clear that factories can not be idle for long, they have to do something.”
French carmaker Renault has a 68 percent stake in Russia’s largest carmaker, AvtoVAZ, which produces the best-selling Lada, but on April 27, Russia’s Commerce Minister said Renault had agreed to sell its stake in Russia. scientific institute for one ruble.
The Commerce Department also said that the Renault plant in Moscow, which produced Renault and Nissan brands, would be handed over to the city government.
Russia has warned that it could expropriate foreign assets if the companies leave Russia, and Volkswagen said in a statement that it was following the talks with concern.
Fear of persecution
A tire factory in Kaluga, owned by multinational manufacturer Continental AG based in Germany, said it had restarted part of its production because it was concerned that local officials might face criminal sanctions. In a statement to CBC News, Marc Siedler, who works in media relations for Continental AG, said the company had taken this step in order to “fulfill its duty to care for employees in Russia” and that Continental’s decision to restart was “not way motivated” by profit. The company will not specify what criminal sanctions it was concerned with, but Russia’s State Duma is considering law plan which could allow prosecutors to prosecute local directors or directors for compliance with sanctions In a statement, Continental told CBC it was temporarily resuming production at its Kaluga tire plant because the company was worried its employees could face criminal sanctions if Continental did not meet local demand. (Dmitry Kozlov / CBC)
“We survived on bread and potatoes and we will survive”
However, many Kaluga residents said they were optimistic about the future. In addition to the automotive sector, the city has a number of other factories, including those that produce rail equipment and electronics.
“We have to start producing our own things in these factories,” Viktor Petrovic told CBC News in the city center.
Several residents told CBC News that they had noticed an increase in food prices since the war and that there were shortages of Russian staples, such as sugar and buckwheat, but Petrovich was not too worried.
“In the 1990s we survived on bread and potatoes and we will survive.”
A large Z poster hangs on a building in Kaluga. The letter has become a symbol of support for what Russia calls “its special military operation.” (Dmitry Kozlov / CBC)
In Kaluga, large posters hang on the side of buildings bearing the letter Z, which has become a symbol of support for Russia’s invasion of Ukraine. Like other Russian cities, Kaluga is preparing for Victory Day on May 9, when Russia celebrates its military achievements during World War II.
A billboard with a photo of a decorated military hero stands along one of the boulevards, where a young family stopped to take pictures.
Many in the city feel a strong sense of patriotism, but not a middle-aged woman who stopped talking to CBC News and would only give her first name.
“I do not think anything good is waiting for us,” he said.
“Everyone around me supports the war and says we will survive the sanctions, but I am the complete opposite. I am against the war.”
