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Automakers suspend some business in Russia following invasion

These Russian GAZ Tigr infantry mobility vehicles were destroyed by Ukrainian fighters in Kharkiv on Monday. (Getty Images)   Global auto and truck makers, including Sweden's Volvo Cars and Germany's Daimler Truck, on Monday suspended some business in Russia following that country's invasion of Ukraine. Russian forces invaded Ukraine last week, marking the biggest attack by one state against another in Europe since World War II. Many firms have idled operations in Russia following Western sanctions against Russia. Energy giant BP Plc, Russia's biggest foreign investor, abruptly announced over the weekend it was abandoning its 20% stake in state-controlled Rosneft at a cost of up to $25 billion. On Monday, Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international automaker to do so as sanctions over the invasion continue to bite. In a statement, the company said it had made the decision because of "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US." "Volvo Cars will not deliver any cars to the Russian market until further notice," it said. A Volvo spokesman said the carmaker exports vehicles to Russia from plants in Sweden, China and the United States. This came as Russia warned Sweden and Finland not to join NATO or risk facing “serious military-political consequences." Volvo sold around 9,000 cars in Russia in 2021, based on industry data. Earlier on Monday, RIA news agency reported Volkswagen had temporarily suspended deliveries of cars already in Russia to local dealerships, citing a company statement. VW had no immediate comment when contacted by Reuters. VW previously said it would halt production for a few days this week at two German factories after a delay in getting parts made in Ukraine. Daimler Truck said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz. Mercedes-Benz Group is also looking into legal options to divest its 15% stake in Kamaz as quickly as possible, the Handelsblatt newspaper reported. A Mercedes spokesperson told Reuters business activities would have to be re-evaluated in light of the current events. Mercedes-Benz Group, formerly Daimler AG, was the parent company of Daimler Truck before the truck maker was spun off.

VW offers $2,000 to keep owners loyal

Volkswagen stands to lose a large portion of its customer base in the aftermath of the diesel emissions scandal, but the German automaker isn't about to sit back and watch its customers defect to other brands. To that end, VW is offering significant incentives to keep its buyers coming back. This latest incentive program will award a $2,000 loyalty bonus to existing VW drivers in the United States, to be applied to towards the purchase or lease of a new gasoline- or hybrid-powered vehicle. What's more, the offer can be combined with any other incentive on offer (save for employee or fleet discounts). The automaker is offering discounts of between $2,000 for a Passat to as much as $4,000 for a Touareg, CC, or Eos. The incentives are aimed to stave off a potential dip in sales as public trust of the company plummets in the wake of the diesel scandal. Despite the admission that it had manipulated emissions testing, Volkswagen's sales in the US actually increased in September. But they could stand to drop significantly over the course of October. The discounts may soften that blow some, but the manufacturer is not likely to be able to keep up those incentives in the long run. The move follows a similar initiative undertaken by Fiat Chrysler Automobiles in Europe. There the Italian-American automaker is offering owners of Volkswagen Group vehicles – diesel or otherwise – significant discounts of up to $1,700 to trade into an FCA vehicle. Related Video:

VW recalling all its diesels in Australia

VW's Australian division has announced it will recall all of its diesel vehicles that are believed to be programmed to cheat government emissions-testing process, Reuters says. VW Australia will recall almost 100,000 cars as a result. About two-thirds of the vehicles to be recalled in Australia will be Volkswagen-branded light-duty vehicles, while about 17,000 will be commercial vehicles. About 5,000 vehicles will be Skodas. New VW CEO Matthias Muller (former chief Martin Winterkorn stepped down towards the beginning of the diesel scandal) said last week that VW recalls in Europe would start in January, with all cars slated to be "fixed" by the end of next year. As for US VWs, any massive recall of the nearly half-million affected diesels here will be difficult to make work. VW is still figuring out how to deal with the 2016 model-year diesels, which are new a few months away from seeing the light of day because of the brouhaha. The company has been forced to resubmit those diesels to the US Environmental Protection Agency (EPA) for more testing. Back in Germany, local investigators have searched Volkswagen's headquarters in Wolfsburg for more information on the so-called "defeat device" software built into VW's diesel engines. Volkswagen has set aside $7.3 billion to deal with the fallout from the scandal after estimating that as many as 11 million of its diesel-powered worldwide vehicles use software that essentially games emissions tests system. Without this cheater software, VW's diesels perform worse when they follow emissions regulations. Related Videos: News Source: ReutersImage Credit: Paul J. Richards / Getty Government/Legal Green Volkswagen Emissions Diesel Vehicles vw diesel scandal