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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.

2020 Volvo S60 T8 Long-Term Review Wrap-Up | Final verdict

Twelve months of motoring in the 2020 Volvo S60 T8 went by quickly. Our time in Volvo’s sharp, plug-in hybrid sedan is over, and itÂ’s time for a final verdict. The S60 saw two entirely different worlds in its time with us. We took delivery in normal days — you know, pre-global pandemic — but most of its tenure here was in a Covid-19 world. That being the case, it didnÂ’t get out and travel the country as much as our long-term test vehicles normally do. Prior to getting locked down, our S60 took trips to Chicago, Buffalo, the northern reaches of Michigan and elsewhere in the region. Even once its extended driveway sessions began, we snuck it away once to the East Coast for a quick back-and-forth summer trip. We limited our car swaps to once a month in an effort to stay away from each other on staff and keep each other safe. That meant that each of us got to spend longer stints than usual in the driverÂ’s seat — our normal routine wouldnÂ’t have encouraged this behavior pre-coronavirus. It was more like a true ownership experience, which is exactly what we aim to convey with long-term tests. We plugged it in every night, utilized the Volvo smartphone app to track it and integrated the car more fully into our lives. The odometer reading sat at 16,866 miles in the end. A great number of those miles were done under electric power, thanks to the carÂ’s 22-mile electric range when fully charged — our range testing saw it meet or exceed that figure if driven with a light foot.  And since the car was sitting at home so often, it was working with a full charge in most circumstances. Long highway trips saw us match the carÂ’s combined mpg rating of 30 mpg. Most fill-ups would return a much higher effective mpg number, though, as all the electric motoring helps it along. Folks with shorter commutes should take notice, as S60 T8 ownership will greatly reduce the number of necessary fuel stops. Due to the VolvoÂ’s long 10,000-mile maintenance gaps, it only needed to make one regular dealer stop in our time. Besides that, there were two other trips to the dealer. We had recall work done — there was an issue with the automatic emergency braking system — before the first regular service. And a sunroof snafu was the carÂ’s second and last unscheduled trip to the shop. Read on below for all of our final impressions on the 2020 Volvo S60 T8. 2020 Volvo S60 T8 View 15 Photos Road Test Editor Zac Palmer: The S60 T8 is a slightly sporty sedan, but itÂ’s no sports sedan.

Volvo joins Australia's V8 Supercars series [w/video]

It was just a rumor, but now it's official, mates: Volvo will be joining the V8 Supercars series in Australia with an official team for 2014. Volvo is partnering with Garry Rogers Motorsport and its own Polestar tuning firm to create Volvo Polestar Racing.
A V8 engine will be produced by the Swedish arm of the racing effort, and will be supplied to the Garry Rogers team, which will get the whole shebang ready for the track. The outfit will be running two V8 Supercars "based on the production S60 road car." Considering that the S60 uses a range of transversely mounted engines with four, five or six cylinders (powering either the front or all four wheels) while the new race car will employ a V8 sending about 650 horsepower to the rear wheels, make that very loosely based on the production S60...
Volvo claims this is the first factory-backed entry in the V8 Supercars series from a luxury brand. We should note, though, that Mercedes-Benz is represented in the series with an E-Class sedan, but that outfit isn't quite an official entry from the car's German parents. In any case, you're encouraged to watch the teaser video and read the press release below for all the details.