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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.

Polestar says goodbye to Volvo C30 in video tribute

The Volvo C30 was put to its eternal bed a few months ago, but the tuners at Polestar have a little more eulogizing to do. The Swedish house of speed that has raced and reworked the little hatch since its introduction in 2006 wants the world to know what they've been through together, so it has encapsulated seven years of around-the-world action into three minutes and 28 seconds of track footage and champagne.
We're still waiting on word of a replacement for the funny little hatch, and while we lament what could have been, the video below proves that the C30 provided plenty of thrills for those outside of the US. And as you can read in our recent review of the Polestar-enhanced road-going C30, it provided a decent amount of fun for those of us in the States, as well.

Volvo finds a way to turn body panels into batteries [w/video]

One of the problems with designing an electric vehicle is figuring out where to fit the battery pack. Volvo - as a part of a European Union research project - is working on a way around this issue by replacing standard parts with lightweight components that double as batteries on both conventional and plug-in vehicles. The image above shows one such piece on a Volvo S80. While looking like nothing more than a carbon fiber plenum cover, the piece is actually a battery pack that can store and supply enough energy for the car's entire 12-volt power system.
The parts are made by sandwiching super capacitors (which can charge faster than standard batteries) in between layers of carbon fiber. They can then be formed to replace numerous body panels such as the decklid, roof or door panels. Volvo says that the replacing the body panels and batteries with these nano batteries can help reduce the vehicle's weight by as much as 15 percent. It has taken more than three years just to design the batteries, so there's no telling when, or if, we'll ever see this technology used on a production vehicle. Scroll down for a video and press release on Volvo's innovative battery technology.