BMW, Ford and Others Pull Back From Russia
Automakers recently announced efforts to halt exports to Russia or suspend joint ventures amid the ongoing war.
As Russia continues its military invasion of Ukraine, companies around the world have pulled back from doing business in the country, and several automakers have made the decision to do the same. This week, BMW and Ford announced intentions to scale back Russian-related operations and halt vehicle production with its Russian joint ventures.
In addition to stopping local production on the ground in Kaliningrad where it operates with Russian automaker Avtotor, BMW will stop exporting vehicles to Russia. Representatives for BMW did not immediately return Roadshow's request for comment, but in a statement to The Wall Street Journal, a company spokesperson said "we will stop our local production and export for the Russian market until further notice," citing "the current geopolitical situation."
Ford is making a similar decision regarding its joint venture with Sollers. "In recent years, Ford has significantly wound down its Russian operations, which now focus exclusively on commercial van manufacturing and Russian sales through a minority interest in the Sollers Ford joint venture," Ford said in a press release. "Given the situation, we have today informed our JV partners that we are suspending our operations in Russia, effective immediately, until further notice."
Alongside its decision to withdraw from its Russian operations, Ford announced that its Ford Fund subsidiary will make a $100,000 donation to the Global Giving Ukraine Relief Fund, which provides humanitarian support for Ukrainian citizens displaced during the Russian invasion.
BMW and Ford are not the first automakers to announce similar decisions. On Monday, General Motors announced it would suspend business in Russia, where it sells approximately 3,000 Cadillac and Chevrolet vehicles annually. Reuters reports that Honda has also suspended Russian exports, while Mazda has similar plans.