Toyota to exit Russia, terminating auto production and sales

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NAGOYA, Japan -- Toyota Motor on Friday announced an exit from automobile production and sales in Russia, citing difficulties supplying key materials and parts in the country amid the war in Ukraine.

"It was a difficult decision," Toyota Chief Communications Officer Jun Nagata told reporters online Friday. "We will liquidate our local unit in Russia instead of selling it."

Toyota is the first Japanese automaker to announce a withdrawal from Russia. The automaker will continue to provide repairs for vehicles it has sold in Russia for now.

The automaker suspended operations at its plant in St. Petersburg on March 4, after the Russian invasion began.

"After six months, we have not been able to resume normal activities and see no indication that we can restart in the future," Japan's top automaker said.

A protracted disruption would hurt Toyota's ability to support employees, leaving it no choice but to end production in the country, it said. Mounting geopolitical risks in the region are believed to have contributed to the decision as well.

Toyota had continued to pay factory workers after suspending production, reassigning them to maintenance and other tasks. The automaker said it decided to terminate operations while it has the resources to provide a larger severance to affected workers and help them find new employment.

Details regarding the process and the treatment of employees at the St. Petersburg plant will be ironed out at a later time.

Toyota holds a larger market share in Russia than any other Japanese automaker. It produced 80,000 vehicles and sold 110,000 in the country in 2021.

The company began locally producing vehicles in 2007 at St. Petersburg. The plant's lineup included the RAV4 sport utility vehicle and the Camry sedan in 2021.

Over 1,000 companies have announced plans to curtail operations in Russia, according to Yale University. Renault offloaded its roughly 68% stake in top Russian automaker AvtoVAZ to a Russian state-affiliated research institute for just 1 ruble (2 cents) in May, though the deal included an option to buy back the stake within six years.

Renault alliance partner Nissan Motor has extended its production freeze at its St. Petersburg plant to the end of December from the end of September. Mitsubishi Motors, the third member of the alliance, has paused Russian production as well.

In the food industry, McDonald's and Starbucks are among those exiting Russia.
Not a lightly made decision, and an unfortunate one that was made because of the conflict their dear leader put the country in. This is going to hurt Toyota and Lexus owners too.
 

LateToLexus

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If Russia military drove Chrysler, Jeep, Chevrolet, Ford, etc. products exclusively then this whole thing would all be done as they'd all be stranded.

Maybe it's a strategic move by NATO.
 

Trexus

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If Ukraine just ceased to be a separate nation and get absorbed back into Russia this would all cease to exist and life would get back to normal. Then all car manufacturers can resume operations and even expand.
 

Gecko

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If Ukraine just ceased to be a separate nation and get absorbed back into Russia this would all cease to exist and life would get back to normal. Then all car manufacturers can resume operations and even expand.

Wow… I am… not sure if you're stating that as a personal observation or something you'd like to see, but...

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Levi

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This is bad for Toyota's business. If East and Middle-East consider this a treason, TMC will lose a huge loyal base, and thereby a huge overall market share and global sales.
 

CRSKTN

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This is bad for Toyota's business. If East and Middle-East consider this a treason, TMC will lose a huge loyal base, and thereby a huge overall market share and global sales.
Are you for real
 

Sulu

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If Ukraine just ceased to be a separate nation and get absorbed back into Russia this would all cease to exist and life would get back to normal. Then all car manufacturers can resume operations and even expand.
Really? So when Vladimir Putin goes knocking on the doors of the Baltic states (Estonia, Latvia, and Lithuania) and Finland, threatening "You will be assimilated. Resistance is futile", they should just surrender everything?

So, India, Pakistan and Bangladesh, and even the USA should just give up and give everything back to England, as former colonies. That would get Jaguar and Land Rover back, I guess.
 

CRSKTN

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If Ukraine just ceased to be a separate nation and get absorbed back into Russia this would all cease to exist and life would get back to normal. Then all car manufacturers can resume operations and even expand.
I hope this is sarcasm
 

Sulu

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This is bad for Toyota's business. If East and Middle-East consider this a treason, TMC will lose a huge loyal base, and thereby a huge overall market share and global sales.
Just like it was bad for Renault's and McDonald's businesses.

Do you give in to a bully or stand up to them?
 
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