Toyota: “End of an era” in Russia, announced its withdrawal – Economic Post

Toyota: “End of an era” in Russia, announced its withdrawal – Economic Post
Toyota: “End of an era” in Russia, announced its withdrawal – Economic Post

Toyota Motor announced its withdrawal from Russia and the termination of its production process in the country on Friday, citing the difficulties it faces in the supply of basic materials and spare parts in the country due to the ongoing war in Ukraine.

It should be noted that the automaker has already suspended the operation of its factory in St. Petersburg since March 4, that is, just ten days after the start of the Russian invasion of its neighboring country.

Also Read – Toyota: Triples investment in US battery factory to $3.8 billion

Six months of waiting

“After six months, we have not been able to resume our normal operations, and we see no indication that we can resume in the future,” Japan’s top automaker said.

A prolonged shutdown would harm Toyota’s ability to support its employees, leaving it no choice but to end production in the country, the statement said. Increasing geopolitical risks in the region are also believed to have contributed to this decision.

Also read: Could the big electric vehicle boom run out of energy before it even gets started?

Toyota continued to pay its factory workers after production was suspended, assigning them maintenance and other work. Details related to the process of layoffs and the fate of workers at the St. Petersburg plant will be announced in the near future.

The largest share

Toyota had the largest market share in Russia of any other Japanese automaker. It produced 80,000 vehicles and sold 110,000 in the country in 2021, while it has been present in the country since 2007, with the creation of a production plant in St. Petersburg.

Nissan Motor, another Japanese automaker, extended a production freeze at its St. Petersburg plant from late September to late December.

The article is in Greek

Tags: Toyota era Russia announced withdrawal Economic Post

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