War in Ukraine: Stellantis Sochaux, Alstom Belfort, will the suspension of exports and imports with Russia have repercussions?

On Thursday March 10, the Stellantis automotive group announced the suspension of exports and imports from Russia. Same thing for the railway manufacturer Alstom. The decision has different consequences for the two companies in Sochaux and Belfort, in Franche-Comté.

Don’t expect to see a lot ofPeugeot 3008 or 5008 on the side of Moscow! The Stellantis group, owner of Citroën, Fiat or Peugeot, announced the suspension of all trade with Russia on Thursday March 10. A few days earlier, the railway manufacturer Alstom had done the same. These are direct consequences of the international sanctions adopted in particular by the European Union, following the war in Ukraine. The decision has varying consequences on the operation of the sites of these two companies, in Sochaux (Doubs) as in Belfort (Territoire-de-Belfort).

“For us who produce the Peugeot 3008 and 5008, suspending exports and imports with Russia has no consequences. There are only few cars of this type in this market. We send at most 10 or 20 per month there, compared to the 300,000 units that we manufacture here each year, for all markets”, explains Eric Peultier, Force Ouvrière delegate at the Stellantis site in Sochaux.

Exports to Russia were of little importance to the union representative: “In 2018, we produced an average of 200 3008 or 5008 cars per month to Russia. That was about 10 cars a day, or 10 minutes of production per week.” On the other hand, the concern relates to the crisis of “semiconductors”. These important parts for vehicle dashboards are still missing today. “We are rather following the evolution of this crisis, because they lead to the cancellation of certain working days”, supports Eric Peultier.

It is also on this point that the CGT of the Stellantis site in Sochaux insists. “We were reminded again yesterday [Editor’s note: Thursday March 10], it is semiconductors that can block the production of vehicles. As for the suspension of exports and imports with Russia, we are not yet aware,” says Jérôme Boussard.

In the current context, the group occupies only 1.5% of market share in Russia.

On the Alstom side, the outlook is a little less clear. The employees of the Belfort site (Territoire-de-Belfort) expect a lot from a contract for the supply ofat least 130 locomotivesdoubles for Ukrainian Railways. It should allow the sustainability of the Belfort site, at least until 2029. A memorandum of understanding between the Ukrainian company and Alstom with a view to signing this 880 million euro contract was signed on February 8, in the presence of the President of the Republic.

Problem: The outbreak of conflict between Ukraine and Russia poses a risk to this engagement. “There is inevitably concern” explained to us on February 24, André Fages, CFE-CGC union representative on the Alstom site in Belfort. Same thing for his CGT counterpart, Eddy Cardot: “If the war continues, if the Ukrainian government were to be overthrown, I do not see how this contract worth several hundred million euros could be finalized”.

The next few days must be decisive, according to the union leader: “On March 17, the general management must determine which scenario to adopt. If the situation improves on the war front, we will work until the summer. Otherwise, we will stop on March 31 next.” Apart from this contract, the site produces RGVs (two-level TGVs for some already in circulation) and the TGV-M soon to be put into service.

Over the year 2020-2021, Alstom’s turnover reached 14 billion euros. The Russian market only accounted for less than 0.5% of this result.

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