Chrysler-parent Stellantis will be forced to end its operations in Russia, according to CEO Carlos Tavares.
The exact timing wasn’t made clear, but Tavares cited as factors the disruption to the supply chain and Western sanctions in the wake of the invasion of Ukraine. A company task force is working to monitor the sanctions to ensure compliance, he said.
Tavares said the company’s main focus, however, is on the welfare of its employees in both countries.
The company has a plant, which it operates with Mitsubishi, in Kaluga, Russia, southwest of Moscow, producing Peugeot, Citroen and Opel models. A company spokeswoman said the plant was operating on Friday.
Tavares called it a small or marginal piece of the automaker’s business. The company also owns the Jeep, Ram, Dodge and Fiat brands, and has facilities around the globe.
“The operations will stop because there is simply no more parts, of course,” Tavares told a group of reporters during a virtual meeting.
Other companies, such as Ford, have made formal announcements about their plans to suspend operations in Russia, but Tavares said that he doesn’t see the point.
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“I don’t buy the fact that we need to make announcements, pulling back or not pulling back,” he said. “What’s important is to take care of the people. The decisions are political decisions, and we support the political decisions by being fully compliant. That’s where we are today. … You may be assured that anyway the operations are going to stop because the supply chain is completely disrupted.”
A company spokeswoman has said that about 2,500 people work at the Kaluga plant. Stellantis also has 71 employees in Ukraine. The whereabouts of three of those employees were unclear earlier this week, but the company has since been in contact with all 71, and Tavares said they are safe. The company is keeping in contact with them and providing additional support beyond their salaries because they have “extraordinary expenses” moving around the country trying to find a safe place.
“We are ready to bring them out if that was necessary, but they are the decision makers, we are not,” Tavares said.
The weeklong invasion has already led an estimated 1 million refugees to flee Ukraine, according to the United Nations.
Stellantis, earlier this week, announced plans to provide $1.1 million (1 million euros) to support refugees and civilians.
Tavares said the company’s focus is on the humanitarian side of the disaster, but he noted that it isn’t just a tragedy for the Ukrainians.
Those workers in Russia will be in a position “that is very dire, including those who do not support the regime,“ he said.
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence. Become a subscriber.