Nissan to exit Russia as Japanese automaker plans to sell operations to local partner
Nissan did not give a dollar value for the sale but said it would log a 100 billion yen (USD 680 million) "impact" from its exit from Russia.
Japanese automaker Nissan Motor Co. said on 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 centre 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 (USD 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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
02:20 PM IST