Suppliers increasingly scaling back presence or leaving Russian market altogether

Some companies opt to halt operations while some are downsizing.

There is growing evidence of a component supplier exodus from the Russian market, according to an Isvestiya Daily report. Some companies are opting to halt operations while some are downsizing, according to the report which claimed that Japanese supplier Exedy sold its stake in the joint venture Exedy VIS Rus LLC, which specialises in the production of clutches for AvtoVAZ. At the same time the Japanese manufacturer of springs and shock absorbers KYB was looking at an investment in Russia, but instead opted to locate its logistics warehouse in Lithuania. At the same time Johnson Controls is in the process of mothballing its seats factory which supplied the General Motors (GM) plant at St Petersburg, which is also closing. Faurecia has also reduced its headcount at its plant that manufacturers exhausts for VW and AvtoVAZ in Kaluga.