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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.

2015 Volkswagen Golf: Green Car of the Year?

As you may recall, VW's compact Golf was voted 2015 North American Car of the Year by a jury of 57 veteran automotive journalists (including this one) and named Car of the Year by Motor Trend and Yahoo Autos and Best Car to Buy 2015 by Green Car Reports. "The range of green options in the 2015 Volkswagen Golf range is hard to beat," says Green Car Reports editor John Voelcker. "With more fuel-efficient gasoline engines, a new TDI diesel option that comes close to real-world hybrid mileage levels, and the all-electric VW e-Golf, the 2015 Golf gives buyers a good-better-best menu of options for driving green." The car was also a finalist for Green Car Journal's "Green Car of the Year," but ultimately lost to the BMW i3 EV. When I saw GCJ editor Ron Cogan at last November's Los Angeles Auto Show, he asked me to guess which finalist would win. Based on its efficiency and versatility, I guessed the Golf. He smiled but the next day, he named the i3 the winner. Okay, the technically impressive, carbon-fiber-bodied i3 is a formidable green machine wearing a prestige German label at a semi-affordable ($43,000) price. But it comes in just one (somewhat odd-looking) body style with a choice of all-electric or range-extending electric powertrains, and its EPA-official ranges are 81 miles for the former and just 150 for the latter, costlier version, which totes a tiny (647cc) 34-hp two-cylinder BMW motorbike engine in its tail. By contrast, the 2015 Golf comes in 3- and 5-door hatchback and even more practical Sportwagen body styles and offers a wide range of eager yet fuel-thrifty turbocharged gas and clean-diesel engines, most with a choice of manual or automatic transmission. An all-electric e-Golf, one of the best EVs we've yet driven, is also available in some areas, and that will be followed, VW says, by a hybrid, a plug-in hybrid and even a CNG-powered model. No question this all-new seventh-generation 2015 VW Golf is easily the best ever. A bit larger, roomier, aerodynamically slicker and more fuel efficient than the Gen VI Golf it replaces, it's built on an all-new modular platform and boasts an amazing range of models, powertrains and features.

2023 New York Auto Show Mega Photo Gallery: See all the new cars from the show

The 2023 New York Auto Show was a rather lively show full of North American vehicle debuts and a lot of new metal we’ve never seen before. As always, we were on the ground covering it from every angle for you, including photographing all the reveals on the show floor. There were a ton of new EVs shown and even a stunning concept with the Genesis GV80 Coupe Concept. YouÂ’ll be able to see them all, from the production Ram REV to the little (but now much bigger) Kona, in the numerous galleries below.   2024 Kia EV9 2024 Kia EV9 View 7 Photos 2024 Kia EV9 GT-Line 2024 Kia EV9 GT-Line View 5 Photos 2025 Ram REV 2025 Ram 1500 REV View 6 Photos Genesis GV80 Coupe Concept Genesis GV80 Coupe Concept View 9 Photos 2024 Hyundai Kona Electric, N Line and Limited 2024 Hyundai Kona Electric View 21 Photos 2024 Jeep Wrangler 2024 Jeep Wrangler 4xe View 22 Photos 2024 Subaru Crosstrek Wilderness 2024 Subaru Crosstrek Wilderness View 14 Photos 2024 VW Atlas Peak Edition 2024 VW Atlas Peak Edition View 7 Photos Hyundai Ioniq 5 Disney100 Platinum Concept Hyundai Ioniq 5 Disney100 Platinum Concept View 9 Photos   Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Genesis GV80 Coupe Concept is coming to reality