Logistics Crisis Due to Ukraine War, Mitsubishi Closes Factory in Russia

Mitsubishi Motors last week said it was shutting down its plant in Russia. Mitsubishi is following several other automakers who have already done so and there is no word on when the facility will open.
“Due to logistical needs, export of vehicles and supply of components to Russia has been suspended since March,” Mitsubishi said in a statement.

Russia, which invaded Ukraine since February 24, has been slapped with economic sanctions from various countries, most notably the United States. Japan also did the same, including freezing the assets of government officials and three financial institutions to punish Russia.
Mitsubishi’s discontinued factory is in Kaluga. The factory manufactures vans and is jointly owned by Stellantis.

Stellantis, the world’s fourth-largest automaker, said in March it was closing its Kaluga plant after running out of all components.
Stellantis has also been involved in all exports and imports related to Russia.
Not only that, Stellantis has said it will move production to Europe and no longer plans to increase investment in Russia. Meanwhile, van production in Kaluga is continuing for local market needs.

The new car market in Russia collapsed 62.9 percent in March compared to the same period in 2021. This was mainly due to the problem of hampered component supply and rising prices due to disrupted logistics.