In a surprising turn of events, Stellantis' plant located in Kaluga, Russia, has reportedly resumed assembly operations for Citroen C5 Aircross models, despite the carmaker suspending production in Russia back in April 2022 amidst the conflict with Ukraine. This revelation comes from a recent Reuters report, shedding light on the intricate dynamics of the automotive industry amid geopolitical tensions.
Despite Stellantis holding a 70 per cent stake in the Kaluga plant, with the remaining 30 per cent owned by Mitsubishi Motors, the facility is said to be utilised by a Russian company called Automotive Technologies to manufacture the Citroen SUV. The involvement of Chinese car kits further complicates the situation. Automotive Technologies reportedly imported 42 kits from Dongfeng Motor Group in China, a company closely tied to Stellantis through a commercial joint venture.
The decision to resume operations at the Kaluga plant raises questions about brand control, with Stellantis admitting that it has "lost control of its entities in Russia." Previously, the Kaluga factory produced various brands under Stellantis, including Peugeot, Citroen, Opel, and Mitsubishi, with an annual capacity of 125,000 vehicles. The financial toll of the suspension is substantial, with Stellantis claiming a loss of Euro 144 million, including significant cash reserves.
Despite the resumption of assembly operations, uncertainty looms over the branding of the produced SUVs. Car dealers in Russia have been informed that they will be receiving Citroen C5 Aircross models from Automotive Technologies, but it remains to be seen if they will retain the Citroen badge. This ambiguity is compounded by the emergence of Automotive Technologies, a company registered in Moscow in 2023 and owned by Galina Dolgolenko, which aims to ramp up production in 2024.
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The situation underscores Russia's reliance on China for automotive components and the challenges faced by multinational companies in maintaining control over operations in politically volatile regions. As carmakers navigate these complexities, the Russian market continues to see supplies through unconventional channels, including parallel import schemes, adding another layer of complexity to an already intricate landscape.