Stellantis, the multinational automaker, has announced that it has "lost control" of its factory in Kaluga, southwest of Moscow, where unauthorized production of the Citroën C5 is currently underway.
This development follows the company's suspension of operations in Russia in 2022, which resulted in a financial loss of approximately $240 million due to sanctions.
The Kaluga factory, previously 70% owned by Stellantis and 30% by Mitsubishi, is now operated by Automotive Technologies.
This new entity commenced serial production of the Citroën C5 Aircross in March, with plans to start deliveries to Russian customers by May 2024.
China's Role in the Russian Auto Market
According to reports from Reuters, these vehicles are being assembled using components imported from China instead of France, marking a significant shift in the supply chain.
Specifically, 42 different car parts manufactured by Dongfeng Motor Group are being shipped to Russia for assembly at the Kaluga plant.
Prior to the geopolitical upheaval caused by Russia's invasion of Ukraine, the Kaluga facility had an annual production capacity of about 125,000 vehicles.
The takeover and continuation of production activities at this plant underscore the deepening economic ties between Russia and China, especially in the automotive sector.
In fact, China's car exports to Russia surged sevenfold in 2023 compared to the previous year.
