The factory is reportedly being used for assembling kits made by Dongfeng and imported to Russia.
Stellantis’ plant in Kaluga, Russia is being used to assemble Citroen C5 Aircross models, reports Reuters. The carmaker had halted production in Russia in April 2022, amid the conflict with Ukraine, which began in February 2022. However, the factory, which it has a 70 percent stake in – the rest is held by Mitsubishi Motors – is reportedly being used by Russian company Automotive Technologies to manufacture the SUV.
- 42 kits made by Dongfeng imported from China to Russia
- Stellatis says have “lost control of its entities in Russia”
- Unclear if it will be sold under Citroen brand or new Russian nameplate
In December last year, Automotive Technologies imported at least 42 car kits for assembling the Citroen C5 Aircross at the Kaluga plant, the report says. It adds that the kits were produced by China’s Dongfeng Motor Group, which incidentally, operates a commercial joint venture in China with Stellantis, through which Dongfeng can build and sell Stellantis cars in the country.
While highlighting Russia’s reliance on China for its automobile industry, the incident also brings to light the lack of control Western companies seem to have over their brands after suspending Russian operations or leaving the country. Stellantis said it had concluded since Dec. 31, 2023, that it has “lost control of its entities in Russia.”, the publication reports.
Prior to the suspension of operations, the Kaluga factory produced Peugeot, Citroen, Opel and Mitsubishi cars and had an annual capacity of 1,25,000 vehicles.
The company claims a loss of Euro 144 million (about Rs 1,288 crore) as a result, including the loss of Euro 87 million (about Rs 778 crore) of cash and cash equivalents. Just last month, Hyundai announced the sale of its St Petersburg plant, taking a hit of approx Rs 1,830 crore on selling the factory.
SUV may not be have Citroen brand
Car dealers in Russia have reportedly been told that they would be receiving Citroen C5 Aircross models from Automotive Technologies, assembled in Kaluga from imported kits. Automotive Technologies is a company registered in Moscow in March 2023 and 100 percent owned by Galina Dolgolenko. The firm said in December that it was assembling a pilot batch of 48 imported cars, ahead of mass production beginning in 2024, but did not name the supplier or model of the car.
It is unclear whether the cars being produced at the plant will retain the Citroen badge. In 2022, Russia revived the Soviet-era Moskvich brand name, but the Moskvich 3 is allegedly a Sehol X4 made by JAC Motors, China, and assembled in Moscow using kits purchased from a Chinese partner.
While many carmakers have left the Russian market, some supplies continue to be available through a “parallel imports” scheme, which allows importers to bring in products without taking the trademark owner’s permission.
Also see:
How Russia’s invasion of Ukraine is affecting automotive industry