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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.

Volkswagen Caddy gets the Alltrack treatment for Frankfurt

We've seen Alltrack versions of the VW Golf and Passat. The German automaker's commercial vehicles division has even done a concept version of the Multivan with a similar treatment. And now it's taking that same rugged off-road approach with the Caddy van. The new Caddy Alltrack starts off with the latest, fourth-generation city van revealed earlier this year in Geneva, and beefs it up to replace the previous Cross Caddy. That comes down principally to black trim on the wheel arches, side sills, bumpers, and underbody protection with metallic accents. It also packs unique 17-inch alloys, fog lights, chrome trim on the grille, silver roof rails, a new optional beige metallic paint (pictured), and Alltrack logos galore. The interior has similarly been worked over with unique trim. Though no mention has been made of any suspension upgrades, the Caddy Alltrack can be specified with 4Motion all-wheel drive. Prospective buyers (in markets where VW offers its commercial vehicles line) will also have to choose between passenger and panel van body-styles, and between four diesel and three gasoline engine options. They range in output from 74 to 123 horsepower and come mated to manual or dual-clutch transmissions with five, six, or seven gears. Look for the new Caddy Alltrack to highlight the Volkswagen Commercial Vehicles display at the Frankfurt Motor Show opening later this week. Related Video: The new Caddy – now available as Alltrack version with off-road styling - World premiere of Cross Caddy successor at IAA 2015 - Fourth generation of the Volkswagen best-seller once again available in rugged off-road style - Passenger car and panel van Alltrack variants optionally available with 4MOTION Hannover/Frankfurt, 10 September 2015 – Volkswagen Commercial Vehicles will be showcasing the latest off-road style version of its best-selling Caddy at the IAA (International Automobile Show) from 15 to 27 September, 2015. The successor to the Cross Caddy is called the Caddy Alltrack. Like its predecessor, it is available both in passenger car and panel van formats. The latest version of the urban delivery van and family MPV is clearly distinct from the other Caddy models with its exclusive 17-inch alloy wheels 'Quito', new Mojave Beige metallic paintwork and optional 4MOTION all-wheel drive technology.

Recharge Wrap-up: Chevy bi-fuel Silverado 3500HD Chassis Cab, VW Car-Net works with Apple Watch

Volkswagen's Car-Net app will be compatible with the Apple Watch. Using the app, owners will be able to lock and unlock their car, check charging status or fuel level, locate their car, flash the lights, and honk the horn of their vehicle remotely from their wrist. E-Golf owners can begin or end charging or operate climate control through their Apple Watch. The app can also monitor other household drivers with speed and boundary alerts - perfect for the parent who lends their car to a teenager. Read more in the press release from Volkswagen. Chevrolet is launching the bi-fuel 2016 Silverado 3500HD Chassis Cab. The work truck will now offer a version that will run on both gasoline and compressed natural gas (CNG). "CNG burns cleaner and costs less at the pump than gasoline, making it an appealing option for fleets," says GM's Ed Peper. Companies like Southern California Gas Co. find that trucks like this meet their work needs and help them achieve their goals of greening up their fleets, GM says. Read more in the press release from GM. UPS has made a deal to buy renewable natural gas from Clean Energy Fuels. This make UPS the biggest user of natural gas in the shipping industry. Clean Energy Fuels, co-founded by T. Boone Pickens, will provide UPS with its Redeem brand natural gas, which uses methane captured from landfills. UPS hopes to log 1 billion miles with its alternative fuel and advanced technology fleet by 2020. "Our rolling laboratory approach provides a unique opportunity for UPS to test different fuels and technologies," says Mitch Nichols of UPS. "Today's RNG agreement will help mature the market for this promising alternative fuel." Read more in the press release below. UPS BECOMES NATION'S LARGEST USER OF RENEWABLE NATURAL GAS IN SHIPPING INDUSTRY New Agreement with Clean Energy Will Help Grow Market for Use of Methane Gas from Landfills as Fuel Atlanta, May 5, 2015 – UPS® (NYSE:UPS) today announced it has entered into an agreement to purchase renewable natural gas (RNG) for its delivery vehicle fleet from Clean Energy Fuels Corp. (NASDAQ: CLNE). The deal signifies UPS's plan to significantly expand its use of renewable natural gas for its alternative fuel and advanced technology fleet. The company has a goal of driving one billion miles using its alternative fuel and advanced technology fleet by the end of 2017. Clean Energy Fuels, co-founded by T.