Russian President Vladimir Putin said that major auto companies such as Volkswagen, Stellantis, Ford, Renault, and Hyundai will be in a very disadvantageous position if foreign companies withdraw from Russia and nationalize their assets.

According to businesskorea, Joe McCabe, chief executive of AutoForecast Solutions, warned in an interview with Automotive News that the Russian government is highly likely to nationalize the assets of overseas automakers that have ceased operations in Russia.

It is understood that Renault announced on March 23 local time that it will immediately close its Moscow plant, which has assets worth about 2.2 billion euros. In addition, Renault is also considering discontinuing AvtoVAZ operations. AvtoVAZ is a Russian automobile manufacturing company founded in 1966. Renault is its largest shareholder with a 69% stake.

Ford earlier expressed concern about Russia's foray into Ukraine and said it would immediately shut down its joint venture Ford Solus, which manufactures and sells commercial vans in Russia; Stellantis also decided to shift production of some models from Russia to Western Europe; Mercedes-Benz Announced to stop production in Russia and suspend exports. In its annual report released this month, the company feared that some 2 billion euros worth of Russian assets could be seized by the Russian government.

Separately, concerns are mounting at South Korean automaker Hyundai Motor, which produces more than 200,000 vehicles a year at its St. Petersburg plant. On March 24, Hyundai Motor's production subsidiary in Russia informed its employees and partners that it would suspend production indefinitely from March 27 due to a collapsed global supply chain and a shortage of components, including automotive semiconductors. However, the South Korean automaker appears to be blaming the shutdown on parts shortages rather than the Ukraine crisis.