NISSAN announces exit from Russian market

NISSAN announces exit from Russian market


 

RusAutoNews.- Signalling its imminent exit from the market, Nissan Executive Committee has approved the sale of its Russian operations to NAMI, the Central Research and Development Automobile and Engine Institute.

The sale will transfer all operations in Russia under the Nissan Manufacturing Russia legal entity to NAMI for future passenger vehicle projects. This covers manufacturing and R&D facilities in St Petersburg, and Sales & Marketing centre in Moscow, which will operate under a new name.

The announcement follows the suspension from March of operations in the market. Under the new ownership of the entity, all employees in the market will receive employment protection of 12 months. The sale is expected to be formalised in the coming weeks following approvals from the relevant authorities. The terms of the sale would allow Nissan the option to buy back the entity and its operations within the next six years.

The company will take a one-off impact of approximately 100 billion yen from this exit. However, Nissan will maintain its full-year guidance. Details will be reported after further assessment as part of the regular disclosure during the second quarter results in November 2022.

“On behalf of the company, 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,” said the President and CEO Makoto Uchida.

Since Nissan assumed zero activity in the market in this fiscal year, the company remains on track to achieve its business objectives under the NissanNext transformation plan, as the company progress towards its Ambition 2030 goals.