Nissan has announced that it has made its official exit from the Russian market, although sales of Nissan vehicles will continue in the near future under a state-owned automotive research group, with local Nissan employee protection of up to 12 months.
Back in March, Nissan suspended manufacturing, imports and sales of vehicles in the Russian market, citing the problematic Ukrainian conflict. Now, Nissan has made the move to sell both its manufacturing and research and development centres in Saint Petersburg, as well as its sales and marketing divisions based in Moscow, reportedly for a token fee of just one euro.
Nissan’s manufacturing and R&D facilities are set to continue under a new name, with the sale to the Russian state-owned Central Research and Development Automobile and Engine Institute, otherwise known as NAMI. This is under the condition that Nissan can buy back its entity and operations at some point within the next six years.
Nissan says it expects the move to result in a 100-billion yen loss, equivalent to about US$687 million, with further reporting set to be disclosed in its second quarter results in November. Nissan’s president and CEO, Makoto Uchida, said:
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years. While we cannot continue operating in the market, we have found the best possible solution to support our people.”
The move comes as rivals like Toyota, Volkswagen, General Motors and Mercedes-Benz have all suspended vehicle imports and any local manufacturing based in Russia, although Toyota has continued to provide parts, vehicle servicing and repairs.
