Automotive Exports June 2022

Stellantis halts
production at
Russia car plant
American-European automaker Stellantis
announced the suspension of production
at its factory in Russia, citing a lack of parts
and sanctions against Moscow over the
Ukraine war.
The group, which was formed in January
last year when Fiat-Chrysler and PSA
merged, had already announced in March
that it was halting imports and exports to
and from Russia.
Production for the local market at the
Kaluga factory southwest of Moscow
also slowed down, and the company had
warned that it would have to suspend work
due to shortages of components.
The factory was meant to produce Peugeot,
Citroen and Opel vans for the European
market.
However, Russia’s invasion of Ukraine
prompted it to transfer that production to
Hordain, in France, and Luton, in England.
“Given the rapid daily increase in cross
sanctions and logistical difficulties,
Stellantis has suspended its manufacturing
operations in Kaluga to ensure full
compliance with all cross sanctions and to
protect its employees,” the company said
in a statement.
The factory’s 2,700 employees have
been temporarily laid off or placed on
holiday until June. Most automakers have
suspended their production in Russia since
Moscow invaded Ukraine on Feb. 24.
Hundreds of foreign companies, ranging
from retailers to banks, have also halted
operations there since the war broke out.
Incentives issued for some 41 bln
Turkish Liras of investments
Incentive certificates for investments worth
a total of 40.7 billion Turkish liras ($2.6
billion) were issued in March, Industry and
Technology Minister Mustafa Varank has
said.
“The private sector’s appetite for
investment continues. Those investments
will produce jobs for 27,200 people,”
Varank tweeted.
Two-thirds of those investments for which
incentives were issued will be made in the
manufacturing sector, while the shares of
the energy and services sectors are 4.8
percent and 32.3 percent, respectively,
according to information the minister
provided.
Some 1.4 of the investments will go to
the agriculture industry and another 1.1
percent to the mining industry.
According to the minister, 39 percent of
those investments are expansion, while 54
percent are new investments.
The Industry and Technology Minister
granted a total of 7,070 investment
incentive certificates in January this year
for projects worth some 21 billion liras,
which foresee the employment for nearly
24,000 people.
In February, 617 intensives were issued
for planned investments worth 17.7 billion
liras with the potential to produce more
than 20,000 jobs.
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