Image: Nissan
Image: Nissan
Image: Nissan
Nissan has taken the decision not to resume operations in Russia following halted production amidst the country’s invasion of neighbouring Ukraine. In the complete exit of the Russian market, the automaker has also taken a hefty $687 million loss.
Image: Nissan
Nissan President and CEO Makoto Uchida stated: “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.”
Nissan has been part of the Russian market for decades and officially started production of vehicles in 2009 at the St. Petersburg plant. With a focus on building SUVs, the plant produced the X-Trail, Qashqai and Murano with great success, signalling a record 56 525 vehicles produced in 2018 alone.
That will all be no more since Nissan has announced that it will completely exit the Russian market and follow partner Renault in their decision to do the same earlier this year. The reasoning remains the same, global pressure and sanctions of the Russo-Ukrainian war have placed a strain on the Russian economy in order for the government to sue for peace after the conflict had a global influence on world proceedings.
Originally halting production and operations at the advent of the war in March, the Japanese automaker stated they would consider resuming in September however since no amicable solution to the conflict has been found, Nissan has opted to completely pull out of the country controlled by a totalitarian regime.
Image: Nissan
The Nissan Motor Co has agreed to sell all of its assets and business to a state-owned entity for €1, which signals a massive 100 billion yen loss, which works out to approximately $686 455 000 at current exchange rates. The Japanese company has a clause built in, which can have them repurchase the entire operations back within six years of this deal from buyers; NAMI, the Central Research and Development Automobile and Engine Institute.
Former employees affected by the despondency will receive financial compensation equating to 12 months of pay.
Keyword: Nissan completely exits Russian market and takes $687 million loss