Japanese automaker Nissan Motor has announced it will pull out of Russia. It says it cannot project when it can resume production there due to the ongoing conflict between Russia and Ukraine.
The company said on Tuesday it expects to book a loss of 100 billion yen, or about 686 million dollars, due to the withdrawal.
Nissan decided to sell all shares of the local firm that runs the plant to a state-owned entity for 1 euro, or about 97 cents.
Production at Nissan's plant in St. Petersburg has been halted since March due to difficulty in procuring parts following Russia's invasion of Ukraine.
The plant went into operation in 2009, and was turning out about 45,000 SUVs a year.
In addition to the production facilities, about 2,000 workers at the plant will also become employees of the state-owned entity.
The invasion of Ukraine led Japanese automakers to review their operations in Russia.
Toyota has decided to close its plant in St. Petersburg. Mazda is in talks with its local joint venture partner to end production at its factory in Vladivostok.
The company said on Tuesday it expects to book a loss of 100 billion yen, or about 686 million dollars, due to the withdrawal.
Nissan decided to sell all shares of the local firm that runs the plant to a state-owned entity for 1 euro, or about 97 cents.
Production at Nissan's plant in St. Petersburg has been halted since March due to difficulty in procuring parts following Russia's invasion of Ukraine.
The plant went into operation in 2009, and was turning out about 45,000 SUVs a year.
In addition to the production facilities, about 2,000 workers at the plant will also become employees of the state-owned entity.
The invasion of Ukraine led Japanese automakers to review their operations in Russia.
Toyota has decided to close its plant in St. Petersburg. Mazda is in talks with its local joint venture partner to end production at its factory in Vladivostok.
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Summary
Japanese automaker Nissan Motor withdraws from Russia due to conflict with Ukraine, projecting an unspecified resumption of production. The move is expected to incur a loss of approximately 686 million dollars. Nissan sells its local plant stake for 1 euro and halts production since March.
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ID: 39a05935-d1ba-4777-a0c5-9b40149b0e06
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20221012_14/
Date: Oct. 12, 2022
Created: 2022/10/12 12:50
Updated: 2025/12/09 12:50
Last Read: 2022/10/12 23:14