Daimler Truck, AB Volvo sever Russian business ties

March 1, 2022

Tyson Fisher


The conflict between Russia and Ukraine may affect the trucking industry in ways other than fuel prices, as Daimler Truck is severing Russian business ties, including its relationship with Russian truck manufacturer Kamaz.

On Monday, Reuters published a report revealing Daimler Truck’s decision. In its report, Reuters obtained an internal memo indicating Daimler Truck will no longer build trucks under its partnership with Kamaz. Additionally, the German truck manufacturer will no longer supply components to the Russian company.

A Daimler Truck North America spokesperson confirmed the report to Land Line.

“Reflecting the past days’ developments and the geopolitical situation further intensifying, we decided to immediately suspend all our business activities in Russia until further notice,” Daimler Truck told Land Line in a statement. “We are monitoring the situation very closely and will continuously review our decision. We will obviously comply with all measures taken by the German government and the EU.”

Daimler Truck’s decision is likely the result of international sanctions against Russia.

Germany has maintained a mostly pacifist approach to its foreign policy since World War II. Additionally, Germany – and the European Union in general – has a financial stake with Russia with the Nord Stream 2 AG pipeline.

“We are deeply shocked by the military violence in Ukraine and very concerned about the threats to peace and stability in Europe,” Daimler Truck stated. “We clearly stand for peaceful global cooperation and categorically reject any form of military force.”

Daimler Truck is not alone. Reuters is also reporting that Swedish truck manufacturer AB Volvo is also stopping production and sales in Russia. According to the report, only 3% of Volvo Group’s sales come from Russia. The Swedish company has only one factory in Russia.

It is not clear whether truck manufacturers based in North America are implementing a similar strategy. It is also unclear how cutting ties with Russia may affect truck manufacturers thatdo business in the country.

President Joe Biden imposed further sanctions against Russia on Monday. Along with Germany, France, the United Kingdom, Italy, Japan, Canada, the European Union and others, the United States is sanctioning the Russian Central Bank.

According to a senior Biden administration official, the sanctions prohibit Russia from accessing assets that are either in the U.S. or in U.S. dollars. Effectively, the sanctions prevent North American companies from doing business in Russia.

Navistar and Paccar could not be immediately reached for comment. LL