Stellantis has been forced to halt production at its Kaluga Assembly Plant (PSMA Rus) in Kaluga, Russia. Stellantis CEO Carlos Tavares has cited a disruption in the supply chain and ongoing sanctions from the West due to the Russian invasion of Ukraine, as the reason behind the decision.
The facility is located about 125 miles southwest of Moscow and currently employs about 2,700 employees. Owned in partnership with Mitsubishi Motors (70% of the plant is owned by Stellantis), the facility manufacturers vehicles like the Peugeot 408, Citroën C4, Mitsubishi Outlander, and Mitsubishi Pajero. The plant also assembles light commercial vehicles (LCVs) vans for the Opel, Peugeot, and Citroën. Those vehicles are the Peugeot Partner, Citroën Berlingo, and Opel Combo.
Stellantis production doubled at the plant in 2021 with 11,708 units built for the automaker. When combined with Mitsubishi’s production numbers at the plant, the total of units built in 2021 was 33,137. According to Stellantis, the plant benefited from the strong demand of the home delivery market during the pandemic. The plant was expected to expand production of its LCVs, with the introduction of the all-new Fiat Scudo.
The automaker has said that it would be turning the facility into an export hub that would supply engines to other facilities in the EMEA and Latin American markets.
With an annual production capacity to grow to 125,000 units, however, that looks doubtful now. Without its exporting capability, shortage of parts, and an expectation of lower local demand, the facility looks doomed. Stellantis has consequently said that it will move some of its LCV production from the PSMA Rus facility to another plant located within Western Europe.
Stellantis has also announced that it is joining a growing list of Western companies, stopping their investments in the country as well. Unfortunately, for the employees at the plant, it is beyond their control.