Chrysler's parent Stelantis will be forced to end its operations in Russia, according to CEO Carlos Tavares.
The exact timing was not made clear, but Tavares cited factors such as disruption in the supply chain and Western sanctions in the wake of Ukraine's invasion. He said a company task force is working to oversee the restrictions to ensure compliance.
Tavares said the company's main focus is on the welfare of its employees in both countries.
The company has a plant, which it works with Mitsubishi in Kaluga, Russia, southwest of Moscow, producing Peugeot, Citron and Opel models. A spokesman for the company said the plant was operating on Friday.
Tavares called it a small or marginal piece of the automaker's business. The company also owns the Jeep, Ram, Dodge and Fiat brands, and has facilities around the world.
"Operations will cease because there is certainly no more running," Tavares told a group of reporters during a virtual meeting.
Other companies, such as Ford, have made formal announcements about their plans to suspend operations in Russia, but Tavares said he does not see the point.
"I don't buy the fact that we need to make announcements, not back down or back off," he said. "It's important to take care of the people. Decisions are political decisions, and we support political decisions by being fully compliant. That's where we are today. ... You can be assured that operations are going to stop anyway." Because the supply chain is completely disrupted."
A spokesman for the company said that about 2,500 people work at the Kaluga plant. Stelantis also has 71 employees in Ukraine. The whereabouts of three of those employees were unclear earlier this week, but the company has since been in contact with all 71, and Tavares said they were safe. The company is in touch with them and is providing additional support beyond their salary as they have "extraordinary expenses" trying to find a safe location across the country.
"We are ready to bring them out if necessary, but they are the decision-makers, we are not," Tavares said.
According to the United Nations, the weeks-long invasion has already prompted an estimated 1 million refugees to flee Ukraine.
Stelantis earlier this week announced plans to provide $1.1 million (1 million euros) to support refugees and civilians.
Tavares said the company's focus was on the humanitarian side of the disaster, but added that it was not just a tragedy for Ukrainians.
Those activists in Russia "will be in a very serious position, including those who do not support the regime," he said.