Japanese auto giant Nissan has announced its exit from the Russian market. The automaker's Executive Committee approved the sale of its Russian operations to the state-owned NAMI, the Central Research and Development Automobile and Engine Institute. Nissan had stopped operations in Russia in March this year, following the invasion of Ukraine. It then ceased operations at the company's St. Petersburg plan later the same month citing parts shortages. Nissan said it will book a loss of 100 billion Yen (around $686.2 million) with the sale of its local unit in Russia. The sale will be formalised in a couple of weeks following approvals from local authorities.
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The sale transfer will include all of Nissan's Russian operations under the Nissan Manufacturing Russia LLC (NMGR) legal entity to NAMI for future passenger vehicle projects. This includes the manufacturing and R&D facilities in St. Petersburg, and Sales & Marketing centre in Moscow, which will operate under a new name. The company further said that all of Nissan employees will receive employment protection of 12 months. The terms of sale allow Nissan with the option to buy back the entity and operations within the next six years.
All of Nissan employees will receive employment protection of 12 months
Speaking about the exit from Russia, Makoto Uchida, President and CEO - Nissan, said, "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."
The automaker said it will maintain its full-year guidance. More details on the exit will be reported after further assessment during the second quarter results in November 2022.
