General Motors suspends vehicle exports to Russia following its invasion of Ukraine.
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Auto giant General Motors has decided to suspend vehicle exports to Russia following President Vladimir Putin's decision to invade Ukraine. GM's move to hold exports follows the application of severe U.S. sanctions on Russia.
A GM spokesperson issued a statement regarding the conflict, saying the company's thoughts are with the people of Ukraine at this time. The spokesperson added that the loss of life is a tragedy and the carmaker's overriding concern is for the safety of people in the region.
The good news for General Motors is that it no longer operates any manufacturing plants in Russia. The company already sold its stake in Russian car brand Avtovaz, which French automaker Renault now owns. GM still operates, however, a national sales company for Russia and CIS markets with vehicles sourced from South Korea and North America.
U.S. piles more sanctions on Russia as war in Ukraine continues
The U.S. government announced on Monday, February 28, that it is imposing stricter sanctions on the central bank of Russia and its other sources of wealth, as per CNBC. The United States is piling on the pressure with this series of escalating actions to force Russia to stop its military action in Ukraine.
A senior U.S. administration official told Reuters that the government's main objective is to make sure that the Russian economy goes backward if President Putin decides to continue with his invasion of Ukraine.
With the United States and its allies using all the tools at their disposal to hurt Russia's economy, that is bad news for companies that have business interests in Putin's country as well as in Ukraine. Volkswagen and Renault have already been forced to halt production this week due to supply chain issues brought upon by the war.
A Volkswagen spokesperson said that the German firm is suspending delivery of its vehicles to dealerships for the time being because of the conflict. The spokesperson added that Volkswagen deliveries would only resume once the effects of the sanctions imposed by the United States and the European Union on Russia have been clarified.
General Motors made it clear that it has limited supply chain exposure to the two countries waging war. The company said that it is working hard to mitigate any potential risks to its people and business.
Also Read: Volkswagen Halts Production at 2 German Plants as Russia's War in Ukraine Causes Parts Shortage
Volvo suspends vehicle exports to Russia
GM joins Volvo Cars and Trucks in suspending exports to Russia. Volvo Cars was the first international automaker to stop vehicle shipments to Russia, making the announcement on Monday.
Volvo exports vehicles to the Russian market from its plants in the United States, Sweden, and China, selling around 9,000 vehicles there in 2021. Volvo Cars decided to halt vehicle exports because of the sanctions imposed by the EU and the U.S. on Russia, citing "potential risks" in trading material with them.
Truckmaker AB Volvo also acted swiftly, suspending its sales and production in Russia in response to its invasion of Ukraine.
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