the vehicle manufacturer Toyota Motor has decided to end production at its Russian factory in St. Petersburg, which had been suspended for more than half a year due to supply problems and sanctions due to the war in Ukraine.
The company, world leader in motor sales, suspended the operations of its only plant in Russia on March 4 due to the interruption of the supply of key materials and componentsbut kept its labor force contracted in the country for maintenance work, with a view to a possible restart of production.
“However, after six months, we have not been able to resume normal activities and we do not see signs that we will be able to in the future, “explained the company in a statement published in the early hours of this Saturday.
Toyota assured that the decision “not taken lightly” and said that they now need to review and restructure their operations in Moscow “with the aim of maintaining an effective organization and continuing to offer support to the sales network to continue serving customers of Toyota y Lexus existing in Russia.
Suspension of imports
Toyota not only suspended vehicle production in Russia in March, but also imports to the country, which had repercussions on other of its activities in the territory such as sales, which it has also decided to put an end to, although it will continue to offer repairs for its vehicles already in circulation in the territory for now.
The Japanese manufacturer added that it will help employees who lose their jobs in the federation to relocate to other positions or find new jobsas well as in their retraining and welfare, including financial assistance.
Toyota will liquidate its local unit in Russia, instead of selling it, according to the company’s director of Communications, Jun Nagatain a meeting with journalists to which the Nikkei newspaper had access.
Presence in Russia
The plant had the capacity to produce 100,000 vehicles annually and the Rav4 and Camry models were manufactured there, mainly for the Russian domestic market.
Toyota, which has the largest market share in Russia among Japanese companies in the sector, began producing vehicles in that country in 2007 and last year reached 80,000 vehicles, while its vehicle sales in Russia amounted to 110,000 units.
Nissan Motor has decided to extend until the end of December the suspension of its production in Russia, while Mitsubishi Motors it also keeps it frozen for the time being.