Another carmaker makes full exit from Russia
Shares in a local Nissan manufacturing subsidiary will be transferred to the state-owned automotive research institute NAMI for one euro, the manufacturer said. The one-off loss is a forecast based on the current exchange rate and is subject to change, the company added.
Nissan and Toyota both suspended their operations in Saint Petersburg, Russia, back in March, after Russia invaded Ukraine on 24 February. Both have concluded in the space of a few weeks that there is no way to restart production anytime soon in a market that the industry once saw as a promising source of growth.
Under the new ownership of the Nissan Manufacturing Russia LLC (NMGR) legal entity, all of Nissan’s employees in the market will receive employment protection of 12 months. The sale is expected to be formalised in the coming weeks following approvals from the relevant authorities. The terms of the sale would allow Nissan the option to buy back the entity and its operations within the next six years.
Nissan will take a one-off impact of approximately 100 billion yen (USD 687 mn) from this exit, but it will maintain its full-year guidance.
Earlier this year, Renault sold its €2.2 billion Russian business to NAMI for a token sum. Its partner's decision to follow suit will cost the French company an additional €331 million, according to a statement.
Mitsubishi, the third member of the largest official automotive industry association, is also considering pulling out, Japan's Nikkei newspaper reported on Tuesday. The company also stopped production at its Kaluga plant in April, Bloomberg reported.
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