Russians use Chinese partner to produce Citroen cars at idled Stellantis plant
CARMAKER Stellantis halted production in Russia in April 2022.
But the decision did not stop Russian operators from joining forces with a Chinese partner the following year to start making new versions of Stellantis’ Citroen models, according to customs data and two people familiar with the matter.
In December last year, Russian company Automotive Technologies imported at least 42 car kits for assembling the Citroen C5 Aircross model at the Kaluga plant, which is still majorityowned by Stellantis, customs records drawn from a commercial trade data provider showed.
Manufactured in China, the kits were produced by China’s Dongfeng Motor Group, the data showed.
Automotive Technologies was assembling the Citroen C5 Aircross at the Kaluga factory, according to two employees at different Russian car dealerships. The sources spoke on condition of anonymity because the information is not public.
It is not clear if the kits from China contained parts that fall under the scope of Western sanctions on Russia, to which Beijing is not a party, and there is no suggestion from the customs data or sources that Stellantis knew about the imports.
But the findings highlight the lack of control Western companies such as Ikea or Carlsberg now have over their brands after suspending Russian operations or leaving the country after the February 2022 invasion of Ukraine.
They also demonstrate Moscow’s increasing dependence on Beijing, particularly in the car industry.
In response to Reuters’ findings, Stellantis said it had concluded since Dec. 31, 2023, that it has “lost control of its entities in Russia.”
Stellantis said it had recognized a loss of 144 million euros ($154.53 million) as a result, including the loss of 87 million euros of cash and cash equivalents.
Chinese state-owned Dongfeng, Russia’s industry and trade ministry and Automotive Technologies did not respond to emailed requests for comment.
Russia’s auto industry had been heavily reliant on investment, equipment and parts from overseas, particularly Europe.
Stellantis blamed logistical difficulties and the sanctions imposed on Moscow when it halted operations. It owns 70% of the Kaluga plant with the remaining 30% held by Mitsubishi Motors 7211.T. Prior to Russia’s invasion of Ukraine, the factory produced Peugeot, Citroen, Opel and Mitsubishi cars with an annual capacity of 125,000 vehicles.
Although many foreign carmakers have since left the Russian market, some supplies continue to make their way to the country through a “parallel imports” scheme introduced by Moscow. That allows importers to bring in products from abroad without the trademark owner’s permission. —