Citroën Models Made in Russia Had ‘Immaterial’ Impact on Stellantis Financials

Despite Western automakers exiting Russia due to economic sanctions related to the 2022 invasion of Ukraine, a ‘parallel import’ scheme initiated by President Vladimir Putin has allowed consumers to access Western products. It was revealed by Reuters that Russian firm Automotive Technologies produced new models of Citroën C5 Aircross in 2023 in collaboration with China’s Dongfeng Motor Group. The vehicles were assembled using imported kits at Stellantis’ Kaluga plant, which had ceased operations following the automaker’s withdrawal. Pavel Bezruchenko, director for strategic development of Automotive Technologies, disclosed in December 2023 that production at Stellantis’ Kaluga plant is scheduled to resume in Q2 2024. While Russia’s ‘parallel import’ scheme bypasses Western sanctions, imported products must be obtained legally. Stellantis, the parent company of Citroën, operates a joint venture with Dongfeng in China, manufacturing Citroën and Peugeot models.

 

Responding to Reuters’ report, a Stellantis spokesperson informed Just Auto that the company suspended imports to Russia in March 2022 and halted manufacturing operations in Kaluga in April 2022 to comply with sanctions. As a result, Stellantis concluded that it lost control of its entities in Russia as of December 31, 2023, leading to an immaterial impact on its financial results.

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