Truck makers band together to exert pressure on Russia
Truck makers including Scania, Daimler and Volvo have turned a cold shoulder in response to Russia’s invasion of Ukraine with sales, parts and manufacturing capabilities frozen.
Daimler Truck says it will suspend production and parts supply to Russia’s largest truck maker, Kamaz, with which it has a joint-venture agreement for production of trucks in Russia. This halting of business is to have immediate effect according to Reuters who cited a Daimler internal memo shared with the news outlet.
Mere months after it’s spin-off from Daimler, Mercedes-Benz Group is also reportedly looking to divest it 15 per cent share of Kamaz according to German newspaper Handelsblatt.
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Daimler and Kamaz joint venture has also come to a sudden halt
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Volvo has suspended all operations at its production facility in Kaluga, Russia, about 180km south-west of Moscow as well as freezing sales of truck and cars.
The Russian Volvo factory employs about 700 people and since opening in 2009 has produced more than 30,000 trucks, the majority of which being FH, FM and FMX models.
“We now have a bit more clarity on sanctions and security in the region … this means all operations in Russia end,” a Volvo spokesperson told Reuters.
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Frozen out: Volvo’s Kaluga plant is around 180km south-west of Moscow
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In line with parent company Volkswagen, Scania has also suspended deliveries of vehicles and spare parts to Russia with the Swedish truck maker’s media relations manager Erik Bratthall saying: “Relations with clients are important for Scania but the values of Scania were more important in this regard.”
This corporate confluence to put economic pressure on Russia is not limited to truck manufacturers either with companies such as Toyota, Apple, Nike, Boeing, Ford, General Motors, Harley-Davidson also announcing curtailed business operations with Russia.