Photo: Nissan Russia
Nissan has announced that it will officially leave the Russian market for good. The move is said to be “imminent,” according to a press release dropped by the Japanese automaker, which comes after their Executive Committee has just approved the sale of its local operations to NAMI, the Central Research and Development Automobile and Engine Institute.
As a result of this move, Nissan’s local branch will transfer its entire operations under its new legal entity, and this will include future passenger vehicle projects, as well as the Sales and Marketing Center in Moscow, and the Research and Development facilities in St. Petersburg, all of which will operate under a new name.
It’s not irreversible, because if the automaker feels like there’s a good reason to return to the Russian market, then they will do so, as the terms of sale would allow them the option to buy back everything, and resume its operations, over the next six years. When it comes to the employees, Nissan claims to have found “the best possible solution,” as they will receive 12-month protection.
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years,” said the company's President and CEO Makoto Uchida. “While we cannot continue operating in the market, we have found the best possible solution to support our people.”
Their ‘Ambition 2030’ plan shouldn’t be affected by this move, even if they assumed zero activity in the Russian market this fiscal year, and they promise to stay focused on their original goals. Leaving the market comes as little surprise, as they extended the suspension of its local factory for three months in September. As for the financial hit as a result of this exit, Nissan estimates it at approximately 100 billion yen, equaling to nearly 690 million U.S. dollars, said to be “a one-off impact.”
It’s not irreversible, because if the automaker feels like there’s a good reason to return to the Russian market, then they will do so, as the terms of sale would allow them the option to buy back everything, and resume its operations, over the next six years. When it comes to the employees, Nissan claims to have found “the best possible solution,” as they will receive 12-month protection.
“On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years,” said the company's President and CEO Makoto Uchida. “While we cannot continue operating in the market, we have found the best possible solution to support our people.”
Their ‘Ambition 2030’ plan shouldn’t be affected by this move, even if they assumed zero activity in the Russian market this fiscal year, and they promise to stay focused on their original goals. Leaving the market comes as little surprise, as they extended the suspension of its local factory for three months in September. As for the financial hit as a result of this exit, Nissan estimates it at approximately 100 billion yen, equaling to nearly 690 million U.S. dollars, said to be “a one-off impact.”
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