More carmakers suspend sales to Russia on Western sanctions

Western companies have spurned Moscow following the invasion, stopping sales in Russia and even saying they would exit investments there.

Honda Motor said it has suspended exports of cars and motorcycles to Russia, signalling the likelihood more Japanese carmakers would join the global swell of companies halting business with Russia after the invasion of Ukraine.

Western companies have spurned Moscow following the invasion, stopping sales in Russia and even saying they would exit investments there. Ford and other global automakers have already said they would suspend operations.

But the response of many Japanese firms has been more muted so far. Honda had suspended exports to Russia as of Wednesday, a spokesperson said, without elaborating when the suspension took effect.

The spokesperson said difficulty in shipping vehicles and making payments was the reason for the suspension. The carmaker does not have factories in Russia, where it sold 1,406 cars in the 2020 financial year.

Mazda also plans to halt exports of auto parts to Russia, the Nikkei newspaper said. A Mazda spokesperson declined to comment. 

Nissan Motor is continuing operations in Russia and is closely monitoring the situation there, a spokesperson said. Its dealerships and offices in Ukraine are closed. Nissan sold 53,000 vehicles in Russia in 2021. Toyota business in Russia was continuing as normal, although there had been partial disruption to shipments to the country. 

Mitsubishi Motor said this week it may suspend production and sale of its cars in Russia citing potential supply chain disruptions as a result of sanctions on Russia. Autos and auto parts made up more than half of Japan's exports to Russia in 2020, according to the finance ministry.

Elsewhere, Daimler Truck has said it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz. Its pre-spinoff parent company, Mercedes-Benz is looking into legal options to divest its 15% stake in Kamaz as quickly as possible. 

Sweden's Volvo Cars said it would suspend car shipments to the Russian market until further notice. Truck maker AB Volvo, which is a separate group from Volvo Cars, is halting production and sales in Russia.

General Motors said it would suspend all vehicle exports to Russia until further notice. French carmaker Renault will suspend some operations at its car assembly plants in Russia next week due to logistics bottlenecks. 

Carmakers Jaguar Land Rover and Aston Martin paused vehicle shipments to Russia, while Germany's BMW has halted the export of cars to Russia and said it would stop production there. 

In aviation, Boeing said it was suspending parts, maintenance and technical support for Russian airlines. Airbus said it has stopped sending spare parts to Russia and supporting Russian airlines, but was analysing whether its Moscow engineering centre could keep providing services. 

Reuters