Manufacturers Worry Ukraine Crisis Could Hurt Auto Sales

Published on March 7, 2014 in News by Danny Geraghty

A soldier smokes as he and others rest atop Russian armored personnel carriers near the town of Bakhchisarai, Ukraine, Friday, Feb. 28, 2014.

Russia’s annexation of the Ukrainian territory of Crimea is causing concern among a wide variety of automakers including Ford, General Motors, Renault and others.

According to a report by Bloomberg, 2.78 million vehicles were sold in Russia in 2013 compared to 2.95 million in Germany and 2.26 million in the U.K., making it a very important market.

Ford Europe Director Stephen Odell says it’s too early to jump to conclusions but still voiced concern:

"The latest situation is very volatile and we are closely monitoring it," Odell said at the Geneva Motor Show.

Ford has a plant in Saint Petersburg that makes the Mondeo and is about to start production of the EcoSport SUV and Edge crossover in the country this year. GM also has a factory in Saint Petersburg.

Renault’s chief performance officer Jerome Stoll similarly voiced concern to reporters about the situation:

"In Russia we have a lot of economic and financial interests," Stoll, said. "Our localization rate is already very high; we are close to 80 percent to 85 percent, so we are not too worried by the devaluation. The main issue is the evolving political situation."