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Japanese automaker Nissan says it is pulling out of Russia

Japanese automaker Nissan Motor Co. says it plans to sell its Russian operations to its local partner and end manufacturing there

Via AP news wire
Tuesday 11 October 2022 12:47 BST

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Japanese automaker Nissan Motor Co. said Tuesday that it plans to sell its Russian operations to its local partner and withdraw from manufacturing there.

The company said its executive committee approved the sale to Russia’s Central Research and Development Automobile and Engine Institute, or NAMI. The sale includes Nissan’s factory and R&D facilities in St. Petersburg and its sales and marketing center in Moscow, it said. The company will operate under a new name.

Nissan did not give a dollar value for the sale but said it would log a 100 billion yen ($680 million) “impact" from its exit from Russia.

“While we cannot continue operating in the market, we have found the best possible solution to support our people," Nissan President and CEO Makoto Uchida said in a statement.

Nissan began making SUVs in St. Petersberg in 2009. It suspended manufacturing in Russia in March after the invasion of Ukraine. The company said the terms of the sale give Nissan the option to buy back its Russian business within the next six years.

Nissan said its employees in Russia would receive “employment protection" for a year.

The sale is subject to regulatory approvals and is expected to be completed within weeks, the company said.

Toyota Motor Corp. announced last month it plans to liquidate its business in Russia. Other Japanese automakers reportedly also are considering leaving the country, following the departure of most Western automakers.

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