GM Will No Longer Ship Cars to Russia
General Motors ceased business practices in Russia to protest the invasion of Ukraine. What impact will this have on the American automaker?
Written by Clare Behe
Reviewed by Kathleen Flear
Around the time American
companies
, alongside many other nations, began to announce a withdrawal of production from Russia in response to Vladimir Putin’s unwarranted invasion of Ukraine in February, General Motors
was the first in the automotive industry to act.GM’s decision and the consequences
GM closed down its Russian plants years ago and makes the majority of its sales in the United States, so was this as detrimental a move as it
might seem
at first glance? In short: no. In no way does the lack of financial impact negate the humanitarian-based move by GM, but it’s simply not central to the Russian vehicle market. The numbers
reflect roughly 3,000 sales annually by General Motors across Russia — a fairly small number. GM works with a handful of car sellers within the country, shipping from the US and Korea, and does not maintain any GM dealerships or production plants within it.Let Jerry find your price in only 45 seconds
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Manufacturer or Metalhead?
The Russia-Ukraine conflict is negatively affecting automakers across the globe, as Russia is the primary provider of two
crucial metals
used for auto production: Nickel, a crucial material to building energy-dense batteries for electric vehicles, and palladium, which is used for catalytic converters. This is not a unique experience to GM, although the company’s CEO Mary Barra
commented
to Automotive News on the shortage, saying, “There are other uses of nickel, so we’re working deep in the supply chain to really understand and make sure we’re covered. Our supply chain team is just phenomenal. They have been working ahead to make sure we have a secure supply.”The long-term effect
Ultimately GM’s decision to pause sales in Russia will have little effect on the company’s value. However, Putin’s decision to invade Ukraine is having, and will continue to have,
detrimental effects
on the prices and production within the automotive industry–and it’s the customer who will quite literally pay the price. That could permeate all sides of the customer experience. Don’t let it hurt car insurance! If you're worried you're spending too much on car insurance, check out the free Jerry app!
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