Business & Economy

Toyota ends its vehicle production at Russian plant

Tokyo, Sep 24 (EFE).- The vehicle manufacturer Toyota Motor has decided to stop production at its Russian factory in St. Petersburg, which had been suspended for more than half a year due to supply chain problems and sanction due to the war in Ukraine.

Toyota, the world’s largest car manufacturer, suspended operations at its only plant in Russia on Mar/ 4 due to the interruption of the supply of key materials and components.

However, it retained its domestic workforce for maintenance services, and with an eye on a possible resumption of production.

“However, after six months, we have not been able to resume normal activities and see no indication that we can re-start in the future,” the company said in a statement overnight.

Toyota said that the decision was not “taken lightly,” and needed to review and restructure their operations in Moscow “with the clear objective of retaining an effective organization to continue supporting the retail network in providing ongoing service to existing Toyota and Lexus customers in Russia.”

In March, apart from suspending its production in Russia, it stopped imports to the country, which had an impact on its other activities in the country.

The Japanese carmaker added that it would provide its employees assistance for re-employment, re-skilling and well-being, including financial support above legal requirements.

Besides its factory in St. Petersburg, Toyota has 168 sales and service centers in Russia.

The Japanese firm’s plant in Russia had the capacity to produce 100,000 vehicles annually, where the Rav4 and Camry models were manufactured, mainly for the Russian domestic market.

Toyota began producing vehicles in Russia in 2007. Last year produced 80,000 vehicles in the country. EFE


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