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Volkswagen Group has joined the exodus of companies from Russia, suspending exports to and local production in the country in response to its invasion of Ukraine.
The move affects VW’s two factories in Russia that produce Volkswagen brand and Skoda models, the maker of Porsche, Lamborghini and Bentley cars, popular with Russia’s elite, said Thursday.
VW delivered about 216,000 cars in Russia last year, about 2.4 percent of the automaker’s global vehicle sales.
The decision to suspend activities mirrors similar moves by a range of automakers, including Ford, BMW and General Motors.
Local employees at VW’s plants will receive short time working benefits, the company said in a statement.
As companies move to sever ties with Russia among broad sanctions, the war on Ukraine is causing significant supply chain disruptions.
VW is halting a number of factories across Europe due to a lack of parts from suppliers in Ukraine.
BMW is also affected and has shut down a number of plants.