Toyota closes plant in Russia – Business – Kommersant

As Kommersant learned, Toyota is ending production in Russia – the company’s plant in Shushary (Petersburg) has been operating for 15 years. According to Kommersant’s interlocutors, the automaker was never able to arrange the supply of components to the Russian Federation. Now the site will be mothballed and subsequently, possibly, sold, but the production of Toyota on it will not resume. The Moscow office of the concern will also be optimized: its employees and the plant staff will be offered increased compensation – from 12 salaries, Kommersant’s sources say. At the same time, the company does not leave the Russian Federation.

Toyota stops production in the Russian Federation, Kommersant’s sources familiar with the situation, including those in auto retail, told Kommersant. In recent months, since the beginning of March, the plant of the automaker in Shushary has been idle due to logistical difficulties after the outbreak of hostilities in Ukraine. The current decision is due to the inability to resume rhythmic deliveries, Kommersant’s interlocutors say. The import of brand cars in the Russian Federation is still suspended.

Toyota production in Russia started in 2007. President Vladimir Putin participated in the ceremony of laying the first stone at the site of the future enterprise in 2005, and then in its launch. Another plant, the opening of which the president attended, Mercedes in the Moscow region, is now for sale (see Kommersant dated August 26).

The Toyota plant was the first of the auto plants in St. Petersburg, and now there are also sites for Nissan and Hyundai, the production of which has been suspended.

On the site in St. Petersburg, Camry and RAV4 models were produced, which were traditionally included in the top bestsellers of the market. The capacities were designed for the production of 100 thousand cars per year. In 2021, the plant increased its output by 20%, to 80.8 thousand cars; over the same period, the company sold 117.3 thousand cars on the Russian market (including Lexus). The company also supplied cars to Kazakhstan, Belarus and Armenia: at the end of last year, the share of exports amounted to 11.9% of the output of the plant in St. Petersburg. In January-August this year, according to the AEB, sales of Toyota and Lexus amounted to 20.9 thousand cars. Toyota from 2013 to 2015 also produced Land Cruiser Prado in the Russian Federation at the facilities of the Sollers plant in Vladivostok.

In addition to refusing to release in the Russian Federation, according to Kommersant, the company is also optimizing the activities of the Moscow office. According to Kommersant’s sources, the company wants to part ways with the employees of both the plant and the office: they will be offered increased payments. A number of Kommersant’s interlocutors say that they will start from 12 salaries.

The Toyota Motor plant in Shushary will be mothballed, Kommersant’s interlocutors told. According to one of them, close to the authorities of St. Petersburg, they will discuss the sale of the asset together with the company.

However, we are not talking about the continuation of the production of Toyota cars, emphasizes another.

For owners of Toyota and Lexus cars, nothing will change, Kommersant sources say: the company will continue to provide after-sales services. In addition, this decision does not affect the operation of the dealer network.

Olga Nikitina