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Automakers suspend some business in Russia following invasion

These Russian GAZ Tigr infantry mobility vehicles were destroyed by Ukrainian fighters in Kharkiv on Monday. (Getty Images)   Global auto and truck makers, including Sweden's Volvo Cars and Germany's Daimler Truck, on Monday suspended some business in Russia following that country's invasion of Ukraine. Russian forces invaded Ukraine last week, marking the biggest attack by one state against another in Europe since World War II. Many firms have idled operations in Russia following Western sanctions against Russia. Energy giant BP Plc, Russia's biggest foreign investor, abruptly announced over the weekend it was abandoning its 20% stake in state-controlled Rosneft at a cost of up to $25 billion. On Monday, Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international automaker to do so as sanctions over the invasion continue to bite. In a statement, the company said it had made the decision because of "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US." "Volvo Cars will not deliver any cars to the Russian market until further notice," it said. A Volvo spokesman said the carmaker exports vehicles to Russia from plants in Sweden, China and the United States. This came as Russia warned Sweden and Finland not to join NATO or risk facing “serious military-political consequences." Volvo sold around 9,000 cars in Russia in 2021, based on industry data. Earlier on Monday, RIA news agency reported Volkswagen had temporarily suspended deliveries of cars already in Russia to local dealerships, citing a company statement. VW had no immediate comment when contacted by Reuters. VW previously said it would halt production for a few days this week at two German factories after a delay in getting parts made in Ukraine. Daimler Truck said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz. Mercedes-Benz Group is also looking into legal options to divest its 15% stake in Kamaz as quickly as possible, the Handelsblatt newspaper reported. A Mercedes spokesperson told Reuters business activities would have to be re-evaluated in light of the current events. Mercedes-Benz Group, formerly Daimler AG, was the parent company of Daimler Truck before the truck maker was spun off.

Germany says nein to EU ban on new fossil-fuel cars from 2035

BERLIN (Reuters) - Germany's government will not agree to European Union plans to effectively ban the sale of new cars with combustion engines from 2035, Finance Minister Christian Lindner said on Tuesday. In its bid to cut planet-warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. That means it would be impossible to sell combustion engine cars from then. European Parliament lawmakers backed the proposals this month, before negotiations with EU countries on the final law take place. Speaking at an event hosted by Germany's BDI industry association, Lindner said there would continue to be niches for combustion engines so a ban was wrong and said the government would not agree to this European legislation. Lindner, a member of the pro-business Free Democrats, which shares power with the Social Democrats and Greens, said Germany would still be a leading market for electric vehicles. (Reporting by Christian Kraemer; Writing by Madeline Chambers; Editing by Miranda Murray and Edmund Blair) Green Government/Legal Green Audi BMW Mercedes-Benz Volkswagen Opel SEAT Skoda

Mercedes may not be done with R-Class after all

The idea of blending a three-row SUV and a minivan into a luxury model like the Mercedes-Benz R-Class still seems wonderfully absurd, particularly when you consider that there was an AMG version of that German people-mover. Apparently, though, one of the brand's execs doesn't believe the concept behind the R-Class is all that bizarre. In fact, he thinks it could be time to try again. Wolf-Dieter Kurz, Mercedes' vice president in charge of SUVs and sports cars, believes that crossovers could be a major driver of product variants in the future due to their popularity. There are a lot of design possibilities to explore in the segment, in his opinion. "There was already one that we had in the portfolio – maybe we were too early – which was the R-Class, which we are still selling in China. It's doing good, with 12,000 to 14,000 units per year," Kurz said during the launch of the GLE and GLE Coupe, according to CarAdvice. Under a recent deal, the quirky model is made by AM General and exported out of the US. Kurz even suggested the exact niche that the new model might fill. "So let's say these more, let's say, on-road based but still very roomy, but not station wagon, is definitely an interesting segment also in the future," he said, according to CarAdvice. That almost sounds like a blend of wagon and SUV in a move not too dissimilar from the current Subaru Outback or the old R-Class. One hurdle for any future model reviving the concept of the R-Class is that the company is already bursting with CUVs. Every size is practically already filled with the GLA, GLC, GLE, and forthcoming GLS, plus Coupe variants for some of them.