Nissan decides to pull out of production in Russia

Reuters file photo
The Nissan logo

Nissan Motor Co. announced Tuesday that it had decided to withdraw from automobile production in Russia, where it had been operating since 2009.

Nissan will transfer its local subsidiary, including its production plant, to an entity of the Russian government. Nissan suspended production in Russia back in March due to the problem of parts procurement stemming from Russia’s invasion of Ukraine.

The company appears to have decided that resuming production is difficult for the time being as the conflict becomes more prolonged.

The Nissan plant is located in St. Petersburg in western Russia and began operation in 2009. It produced SUVs such as the X-trail and Qashqai, with about 43,000 vehicles coming off the assembly line in fiscal 2021.

After suspending production in March, the plan was to keep the plant closed until the end of this year. The plant has about 2,000 employees, who are expected to be kept on when the transfer is completed.

Among Japanese auto giants, Toyota Motor Corp. decided to close its factory in Russia in September, while Mazda Motor Corp. is coordinating with its Russian partner company in order to withdraw from production. Mitsubishi Motors Corp. still has a joint venture plant in Russia with European auto giant Stellantis NV.