The Russia-Ukraine crisis also puts car manufacturers on alert, especially those who are operational in Putin’s state.
The problems for the automotive sector continue to be added without interruption. As if the semiconductor crisis, logistical difficulties, supply shortages and the rise in raw materials prices weren’t enough, the picture is now even more unstable. The Builders must pay close attention to developments in the diplomatic crisis between Russia and Ukraine . Staggering reports following the move by the Russian president, Vladimir Putin, to recognize the independence of the breakaway republics of Donetsk and Lugansk and to send their troops to the Donbass region in the name of alleged “peace”.
The skyrocketing tension led to a general share sell-off and the motor industry has been among the most penalized for days. A loss, however, contained, also thanks to the towing of the Volkswagen shares, which since the initial stages of the session have made significant gains in the wake of the confirmation of a possible listing of Porsche : the shares of the Wolfsburg giant closed up 10.2%; BMW gained 2.2%, Mercedes 1.6% and Stellantis 0.26%.
Renault the most exposed
In any case, in addition to the winds of war, it also affects the future of Russia in an international context. Furthermore, the sanctions could have major repercussions, along the lines of what has happened in the past with Iran, regarding the local presence of various Western companies, already signaled by the decline of Renault by 3.76%.
Losanga is probably the one most exposed to the land of the tsars, so it controls AvtoVaz, with its Lada brand, and owns large plants such as the historic Togliattigrad plant.
However, this is not an isolated case. In Kaluga, a city about 180 km from Moscow, there are factories of the Stellantis conglomerates (in joint venture with Mitsubishi) and Volkswagen , as well as of suppliers of the thickness of Continental and Magna. By virtue of a synergy with Gaz, the Germans from Wolfsburg are also active in Nizhny Novgorod. BMW and Mercedes are also present in Russia.