Ferrari and Lamborghini will stop making luxury sports cars for sale in Russia in protest at Russia’s invasion of Ukraine.
Italian companies announced the suspension of their Russian exports earlier this week.
“Given the ongoing situation, Ferrari has taken the decision to suspend production of vehicles for the Russian market until further notice,” Ferrari said in a statement.
The company also announced it would donate $1.1 million to help Ukrainians in need. The money will be used to take in Ukrainian refugees who are being forced to relocate to Italy.
“Ferrari stands with all the people of Ukraine affected by this ongoing humanitarian crisis,” said Ferrari CEO Benedetto Vigna.
“While we hope for a speedy return to dialogue and a peaceful resolution, we cannot remain indifferent to the plight of all those affected.”
“Our thoughts and support go out to them. We are making our small contribution alongside the institutions that are immediately alleviating this situation.”
Ferrari shares fell more than 3.6% on Wall Street on Thursday.
Ferrari operates two dealerships in Russia. The company has a total of 172 dealerships worldwide. Last year, less than 100 of the 11,000 vehicles sold were on the Russian market. according to Bloomberg.
Ferrari’s rival Lamborghini echoed this, releasing a statement saying: “Given the current situation, business with Russia has been put on hold.”
“Lamborghini hopes for a quick end to hostilities and a return to diplomacy,” said the company, which is a subsidiary of Volkswagen. VW’s luxury automotive brands include Porsche and Bentley.
Since the Russian invasion of Ukraine began in earnest two weeks ago, at least 10 of the world’s largest automakers have announced plans to shut down operations in Russia.
Ford, Renault, Volvo, Toyota, Honda, General Motors, BMW, Volkswagen, Jaguar Land Rover, Porsche, Bentley, Aston Martin and Mercedes-Benz are among the car companies that have either halted production at their Russian plants or suspended exports Russia or both.
French automaker Renault lost more than a third of its market cap after the United States and European Union imposed tough sanctions on the Russian economy.
The company has extensive business ties with Russia, which accounts for about 10% of Renault’s sales. Russia is the second largest buyer of Renault cars.
VW, whose sales to Russia account for 2.4% of all of its global shipments, has been forced to halt production in both Russia and Europe, including the Porsche brand.
Public opinion, which overwhelmingly opposes Russia’s military attack on Ukraine, has forced almost 300 companies from various sectors of the economy to divest shares from Russia.
https://nypost.com/2022/03/10/ferrari-lamborghini-join-other-auto-makers-in-cutting-sales-in-russia-to-protest-war/ Ferrari and Lamborghini join other automakers to cut sales in Russia to protest the war