German car manufacturer Volkswagen on Thursday said it
would stop its vehicle production in Russia due to the ongoing war in Ukraine.

Operations in Volkswagen plants in Kaluga, southwest of
Moscow, and in Nizhny Novgorod, in western Russia, will be suspended “until
further notice” the company said on Twitter. Vehicle exports to Russia will
also be stopped with immediate effect, while deliveries to dealers were already
stopped.

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“With the extensive interruption of business activities
in Russia, the executive board is reviewing the consequences from the overall
situation during this period of great uncertainty and upheaval,” the company
said.

Volkswagen, which is Europe’s largest auto group, said it
would take responsibility for the affected employees in Russia. The company will
pay short-time working benefits to all affected employees. The group has around
4,000 employees in the country.

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“The war in Ukraine is upsetting us all,” VW
officials wrote in a letter to the workforce. “After the Russian attack,
Volkswagen hopes for a quick cessation of the hostilities and a return to
diplomacy,” it added.

Volkswagen has already had to temporarily stop production
at several sites in Germany due to a lack of parts from suppliers in
Ukraine.

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Over the past week, about a dozen global automakers suspended
business in Russia, according to the Wall Street Journal.

Toyota Motor Corp said it would suspend operations at its
plant in Russia’s Saint Petersburg and stop shipping vehicles to the country,
citing supply chain disruptions due to Russia’s invasion of Ukraine.

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The company said its plant in St. Petersburg produced
around 80,000 vehicles last year, mainly for the local market and employs
around 2,600 people, a Toyota spokesperson told AFP.

Honda Motor Company Ltd also suspended its exports to
Russia until further notice, according to an AFP report.

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Ford Motor Company suspended its joint venture with
Russia’s Sollers OJSC and stopped exports to the country. South Korea-based
Hyundai Motor Company Ltd, shut down its plant in St Petersburg, saying it expected
to reopen in a week.