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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.

Volvo teases mysterious new small crossover

The image you see above is just about all we know of the new Volvo crossover that will be revealed at 8:30 pm Central European Time on May 17 (2:30 pm Eastern Standard Time). Volvo released three very short video teasers, all with the tagline "Leave The World Behind," all of which feature a member of the now-defunct band Swedish House Mafia - Axwell sits in a boat in the first, Sebastian Ingrosso walks toward cabin in the second and Steve Angello stares at the sea in a third.
A microsite, www.leavetheworldbehind.com, accompanies the teasers and it's been said that a short film by Lune will feature the band - Swedish Mafia had a hit in 2009 with the song Leave the World Behind. As for the vehicle, theories are that it could be something between the V40 Cross Country and XC60, the new XC90 or something else entirely. We don't have long to wait, and you can watch both teasers below.

5 thoughts about the 2025 Volvo EX30

Well this is a little awkward. When we drove the 2025 Volvo EX30 at the Midwest Automotive Meida Association (MAMA) Spring Rally, it was destined to arrive this year at Volvo’s new entry-level electric car. Then the U.S. government slapped huge tariffs on Chinese-built vehicles. The EX30 is currently built in Chengdu, so Volvo decided to push the on-sale date back to next year when production can begin in Ghent, Belgium, likely making the American-market EX30 a 2026 model. So, the question here isnÂ’t should you buy, but rather, will it be worth the wait? We think so. ItÂ’s a bit small, and cost-cutting has resulted in some ergonomic qualms, but the EX30 looks and drives like a premium small crossover that should carry a less-than-premium price tag. Make sure to look closely at the details Volvo really hit it out of the park with the EX30Â’s design. It does minimalism almost entirely right. At first glance, itÂ’s simple at every turn; a basic box that doesnÂ’t even have a grille. Look closer, though, and you start noticing the interesting and even exciting details. The debossed Volvo insignia up front; the panel gap that curves in the exact same way as the wheel wells; all the linework in the head and taillights. And thatÂ’s just the start. The inside follows the same philosophy. Although it looks a bit basic at first glance, what with the open dash and sole center screen, you eventually notice the actual metal door handles that are extensions of the door trim and the various fascinating materials. That includes the speckled recycled plastic in my test vehicle or the woven fabric style that Road Test Editor Zac Palmer experienced in Sweden. There are little strakes here and there to add some visual interest, and the translucent trim in the vents are another great touch. It all makes the EX30 feel more fun, but also more premium, than its anticipated low price would suggest. Volvo seems to have cheaped out on controls What is frustrating, though, is that Volvo seems to have followed the Tesla, and to a lesser extent VW, model of lowering costs. That center screen handles everything. And yes, that includes the instrumentation. Now, it is something that you can get used to, but then there a lot of less-than-ideal things in life you can get used to. Acclimation does not equal good. Having your speed and other critical info directly in front of you is still superior, be it a head-up display or just a small, supplemental display like even VW provides.