Tragic Bronson
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Toyota To End Vehicle Manufacturing In Russia | Corporate | Global Newsroom | Toyota Motor Corporation Official Global Website
Toyota has decided to end vehicle production at its Saint Petersburg plant in Russia.
global.toyota
Toyota to exit Russia, terminating auto production and sales
Japan carmaker sees no end to supply chain disruptions as Ukraine war rages on
asia.nikkei.com
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.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.