Stellantis NV (NYSE: STLA) is the newest addition to international firms pulling out of Russia as it announced today the suspension of its manufacturing operations in Kaluga, a city southeast of the capital Moscow.
Following the announcement, the company’s shares fell 5.8% pre-market.
The move follows the company’s aim “to ensure full compliance with all cross sanctions and to protect its employees.” The Russian plant, employing around 2,700 workers, will continue to pay salaries through a “local downtime scheme and by using anticipated vacation periods,” as the company told Reuters.
“Stellantis condemns violence and supports all actions capable of restoring peace,” said the company in its statement.
The action is said to have arisen from “the rapid daily increase in cross sanctions and logistical difficulties” as Moscow continues to suffer from economic sanctions imposed by the international community following its invasion of Ukraine.
The facility supplies the firm’s van production in Russia, around 1% of the car market in the country.
The carmaker also announced today that it would be delivering its Q1 2022 financial and operational results on May 5, 2022.
In March 2022, the company announced a joint venture with LG Energy Solution, aiming to invest around $5 billion to launch Ontario’s “first large-scale” electric vehicle battery manufacturing plant.
Stellantis last traded at US$15.10 on the NYSE.
Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
