The EU’s proposed ban would apply to models from several European car brands, including Audi, BMW, Mercedes-Benz, Ferrari and Porsche, as well as boats and planes, as well as chairlifts and motorbikes worth more than €5000 ($A7610).
Mercedes-Benz, BMW, Ferrari and Audi and Porsche parent Volkswagen Group already announced stops on exports to Russia earlier in March.
But the EU’s move carries more symbolic weight than economic bite. Russia represents about two per cent of global sales for Europe’s major luxury vehicle brands.
Strong global demand for the vehicles would pick up the small loss of sales to Russia, according to Bloomberg Intelligence.
“Given a strong order backlog for all the premium brands, I would expect any lost exports to Russia would be redirected to other markets,” Bloomberg Intelligence analyst Michael Dean said.
German automakers association VDA said that the fallout from Russia’s invasion of Ukraine was disrupting transport routes as well as financial transactions and that it was bracing for shortages in a range of raw materials.
It said the impact from the conflict on shipping, rail and air freight was compounding problems in the supply chain at a time when inventory levels were already low.
Here are some of the impacts on the auto industry:
ASTON MARTIN: Has ceased exporting cars to Russia.
AUDI: Production of A4 and A5 models at Audi’s home plant in Ingolstadt, Germany, and the A6 and A7 from the Neckarsulm factory have been suspended from March 7. Audi said further output cuts are likely to follow.
AVTOVAZ: Russia’s biggest car-maker has ceased production at its Togliatti and Izhevsk plants from March 5 on weak supplies of electronic components.
DAIMLER TRUCK: Has frozen its business activities in Russia including its co-operation with Russian truck maker Kamaz.
FORD: In response to Russia’s invasion of Ukraine said it informed (50 per cent) joint-venture partner Sollers it is immediately suspending operations in Russia until further notice. The company has factories in St Petersburg, Elabuga and Naberezhnye Chelny.
General Moors: Has stopped all exports to Russia. GM doesn’t have a significant presence there: It sells about 3000 vehicles a year through 16 dealerships, from a global annual sales base of more than 6 million vehicles.
HONDA: Is halting exports of cars and motorcycles to Russia.
JAGUAR LAND ROVER: Has stopped shipments to Russia.
MERCEDES-BENZ: It expects to reduce production at some of its European plants as supplies of parts produced in Ukraine run short. It said it will adjust shift planning at individual plants, but it will aim to avoid complete production stoppages.
NISSAN: Has suspended vehicle exports to Russia given logistics challenges related to the conflict in Ukraine. It sold 53,000 vehicles in Russia last year. It expects “further challenges” to lead to local production stoppages.
PORSCHE: Has paused output at its plant in Leipzig, which builds the Macan and Panamera as the Ukraine conflict disrupts its supply chain, mainly wiring harnesses.
RENAULT: Shares in the company fell to their lowest close since November 2020.
STELLANTIS: Has established two task forces to deal with the effects of the Russian invasion – one to monitor sanctions imposed by the US and its Western allies on Russia and how the automaker will comply with them; the other to ensure safety for its 71 staff in Ukraine.
TOYOTA: Has stopped production at its Russian factory from March 4 while vehicle imports into the country have also stopped indefinitely. Toyota is Russia’s top Japanese brand, producing about 80,000 vehicles at its St. Petersburg plant which employs 2000 people.
VOLKSWAGEN GROUP: Has joined the exodus of companies from Russia, suspending exports to and local production. It has closed two factories in Russia that make Volkswagen and Skoda models. Factory closures at component suppliers, mainly for wiring harnesses, in the Ukraine have affected supply.
VOLVO: Has suspended shipments to the Russian market until further notice.
By Neil Dowling
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