Russian operators take Chinese help to produce Citroen cars 

Citroen Production: Automaker Stellantis halted production in Russia in April 2022, which led Russian operators to join hands with a Chinese partner the following year to begin making new versions of Stellantis' Citroen models, according to customs data and two sources familiar with the matter. 

In December last year, Russia-based Automotive Technologies imported at least 42 car kits for assembling the Citroёn C5 Aircross model at the Kaluga plant, which is still majority-owned by Stellantis, customs records drawn from a commercial trade data provider showed.

Manufactured in China, the kits were produced by China's Dongfeng Motor Group, the data showed. 

Car Kits

Automotive Technologies was assembling the Citroёn C5 Aircross at the Kaluga factory, according to two employees at different Russian car dealerships.

It is not clear if the kits from China contained parts that fall under the scope of Western sanctions on Russia, to which Beijing is not a party, and there is no suggestion from the customs data or sources that Stellantis knew about the imports.

But the findings highlight the lack of control Western companies such as Ikea or Carlsberg now have over their brands after suspending Russian operations or leaving the country after the February 2022 invasion of Ukraine.

They also demonstrate Moscow's increasing dependence on Beijing, particularly in the car industry.

Stellantis' Russia entities

Stellantis said it had concluded since December 31, 2023, that it has "lost control of its entities in Russia."

Stellantis said it had recognised a loss of 144 million euros ($154.53 million) as a result, including the loss of 87 million euros of cash and cash equivalents.

Chinese state-owned Dongfeng, Russia's industry and trade ministry and Automotive Technologies did not respond to emailed requests for comment.

Russia's auto industry had been heavily reliant on investment, equipment and parts from overseas, particularly Europe.

Stellantis blamed logistical difficulties and the sanctions imposed on Moscow when it halted operations. It owns 70 per cent of the Kaluga plant with the remaining 30 per cent held by Mitsubishi Motors.

Prior to Russia's invasion of Ukraine, the factory produced Peugeot, Citroen, Opel and Mitsubishi cars with an annual capacity of 1,25,000 vehicles.