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Russian auto boomtown grinds to halt over Ukraine sanctions

Thousands of auto workers have been furloughed and food prices are soaring as Western sanctions pummel the small Russian city of Kaluga and its flagship foreign carmakers, with more sanctions likely to come. The Kaluga region, 190 kilometers (120 miles) southwest of Moscow, says it has attracted more than 1.3 trillion roubles ($15 billion) in investment, mostly foreign, since 2006. But Western sanctions imposed in recent weeks after Russia sent tens of thousands of troops into Ukraine have exacerbated lingering component shortages and halted production at two flagship car plants, Germany's Volkswagen and Sweden's Volvo. A third, the PSMA Rus plant that is a joint venture between Stellantis and Mitsubishi and employs 2,000, may halt production soon due to a lack of parts, Stellantis' chief executive said last Thursday. "It is not clear what will happen. They don't give us any concrete information," said Pavel Terpugov, a welder at the PSMA Rus plant. Terpugov said he needs twice as much money to buy groceries than before the sanctions. Analysts have forecast Russian inflation could soar to 24% this year, while the economy may shrink to 2009 levels. The United States and Europe are weighing more sanctions against Russia after Ukraine accused Russian forces of civilian killings in northern Ukraine, where a mass grave was found in Bucha, outside Kyiv. Russia calls its actions in Ukraine a "special operation" and the Kremlin categorically denied any accusations related to the murder of civilians, including in Bucha. One source of hope for some in Kaluga, with its 325,000 residents, is the West may be reluctant to hurt its own companies. "Does it make sense to impose sanctions on its own plant and lose money?" said Valery Uglov, an auto mechanic at the Volkswagen plant. "Does it make sense to lose the Russian market?" "We hope to return to work as soon as possible and everyone will have confidence in the future again," Uglov said. Volkswagen, whose factory employs 4,200 people, in early March suspended operations. A spokeswoman said production remained frozen. Volvo Group, which employs over 600 people to build trucks, also suspended production. Even before the sanctions, Russian car sales had contracted from 2.8 million units from when the Volkswagen factory opened in 2007 to 1.67 million units last year, damaged by both sanctions after the 2014 annexation of Crimea and the COVID-19 pandemic.

VW worker killed in robot accident

A 21-year-old worker died from injuries after being struck by the robot that he was installing at Volkswagen's factory in Kassel, Germany. According to The Financial Times, the man was inside the safety cage surrounding the machine when he was hit in the chest and pressed against a metal plate. Emergency crews took him to a local hospital, where he died. That man's name hasn't been released, but he was reportedly a third-party contractor, rather than a direct employee of VW. A second person was also installing the robot when the accident happened. This individual was farther away and wasn't harmed, according to The Financial Times. The local newspaper reported that the incident took place in a part of the plant used for producing electric motors. The local prosecutor has opened an investigation into whether there was any negligence involved. According to Volkswagen, the Kassel factory is one of its main hubs of transmission production and employs around 15,500 people. The motors and batteries for the e-Up and e-Golf are also made there. In 2008, VW built its one-millionth DSG gearbox at the plant. Related Video:

VW previews huge screens, gesture control with Golf R Touch Concept at CES

Volkswagen is showing off the future of infotainment and connected driving at CES 2015 with a fleet of concepts that highlight its latest technology. According to its displays, the coming years might mean gesture-based vehicle controls and electric cars that drive themselves to find their own charging locations. VW's biggest debut at CES is its next-gen infotainment system, dubbed MIB II. The setup supports a wide array of smartphone integration standards, including MirrorLink, Apple CarPlay and Google Android Auto, to make sure that practically every smartphone user can pair the device's interface with the vehicle. Beyond just keeping occupants entertained, MIB II offers a system called Regular Routes that detects traffic along the driver's regular commute to work and suggests alternatives. The Parking Guide also helps find parking spots that are likely open. If MIB II represents the near future of VW infotainment, then the technology on the Golf R Touch Concept is the next step from there. It takes the brand's hot hatch and adds support for gesture controls inside, plus a trio of massive infotainment screens. This R features a 12.8-inch central infotainment screen, an 8-inch screen below it for things like the climate control and switching media and a customizable 12.3-inch display that digitizes the instrument panel. A camera in front of the central display waits for the driver's hands to make specific movements that activate various vehicle functions. Despite all of the potentially distracting screens, VW says the system offers control without requiring a look away from the road. VW hopes the technology reduces driver distraction and creates a closer relationship with the car. Another of the German automaker's big tech showcases is an e-Golf that demonstrates the potential future of both electric and semi-autonomous driving. This version can be charged inductively, rather than through a traditional power cord, and the exterior lights show when the vehicle is fully recharged. It's also equipped with the e-Station Guide that helps drivers find a charging location and tells them about the payment options there. This e-Golf's other major innovation is VW's Trained Parking system. A camera at the front scans the route to a parking space, and if the driver returns later, then the process can be done semi-automatically.