Nissan's Russian plant, research facility, and sales department have all been formally sold to a state-owned entity.
Vera TikhonovaGetty ImagesNissan revealed Tuesday it will formally sell its business operations in Russia to state-owned entity NAMI for the grand total of 1 euro ($0.97), incurring a loss of roughly $681 million, Reuters reports.
The sale, forced upon the manufacturer as a result of Russia’s invasion of Ukraine, includes Nissan’s manufacturing plant and research facility in St. Petersburg, as well as a sales and marketing hub in Moscow. The deal will give Nissan the right to buy the business back within six years, according to Russia’s industry and trade ministry.
Nissan isn’t the only manufacturer to formally exit the Russian market following the start of the war. Renault sold its majority stake in the Russian car brand Avtovaz to a Russian investor in May for one ruble ($0.016), reports Automotive News. Renault, which owns 43 percent of Nissan, is taking another huge blow with this latest deal, as it expects a $321-million hit to its net income for this second half of 2022.
Production at the St. Petersburg plant has been suspended since March due to supply chain issues. It’s not clear when or if it will restart under new ownership.
Brian Silvestro Road & Track staff writer with a taste for high-mileage, rusted-out projects and amateur endurance racing.
Keyword: Nissan Takes $681 Million Loss as It Sells Russian Arm for 1 Euro