News Toyota terminating car production and sales in Russia

thomas · 24 Sep 2022

Yesterday, Toyota Motor announced an exit from automobile production and sales in Russia, citing difficulties supplying key materials and parts in the country amid the war in Ukraine. They are the first Japanese automaker to announce a withdrawal from Russia but will continue to provide repairs for vehicles sold domestically for now.

A protracted disruption would hurt Toyota's ability to support employees, leaving it no choice but to end production in the country, it said. Mounting geopolitical risks in the region are believed to have contributed to the decision as well. Toyota had continued to pay factory workers after suspending production, reassigning them to maintenance and other tasks. The automaker said it decided to terminate operations while it has the resources to provide a larger severance to affected workers and help them find new employment.

Toyota to exit Russia, terminating auto production and sales

Japan carmaker sees no end to supply chain disruptions as Ukraine war rages on

asia.nikkei.com

Toyota employs around 2,350 people in Russia including at its sole factory, located in St. Petersburg, which began production in 2007 and manufactures the RAV4 sport utility vehicle and the Camry sedan. In 2021, it produced about 80,000 units.

Toyota to end auto output in Russia over war-induced supply crunch - The Mainichi

TOKYO (Kyodo) -- Toyota Motor Corp. said Friday it has decided to exit from auto production in Russia, saying it sees no prospect of resuming already

mainichi.jp

Tokyo Guy · 26 Sep 2022

This makes no business sense.

Petaris · 26 Sep 2022

Tokyo Guy said:
This makes no business sense.

Care to elaborate?

It seems like it must have made sense to Toyota.

mdchachi · 26 Sep 2022

Tokyo Guy said:
This makes no business sense.

They only have one factory in Russia. Just a footnote in Toyota's yearly report. They're smart to get out earlier than later. If conditions change they could easily return.
As for sales to Russia, that could continue via third party distributors such as they do in the Middle East. That would reduce their exposure while somebody else takes responsibility for the sales and distribution.

thomas · 27 Sep 2022

Mazda will follow suit.

Mazda is considering ending production in Russia as supply chain disruptions caused by the war in Ukraine make resuming operations increasingly difficult. Mazda produces vehicles at a joint venture with local carmaker Sollers in eastern Vladivostok under the so-called knockdown method, in which parts are sent for local assembly.

Nissan will move out of Russia at the end of December. Mitsubishi Motors is also suspending operations at a joint venture factory with Stellantis Europe in the southwestern province of Kaluga. France's Renault withdrew from Russian operations.

Mazda in talks to end Russia production, following Toyota exit

Exodus by Japanese automakers to affect European parts suppliers

asia.nikkei.com

nice gaijin · 27 Sep 2022

Russia made a terrible business move by invading their sovereign neighbor and underestimating the backlash they'd face for it. The world may have been more distracted in 2014 when Crimea was seized, but we're all watching now and we aren't having it. Businesses are responding to popular sentiment by withdrawing from Russia. Shame for the workers to be punished for their leader's poor judgment.

Tokyo Guy · 28 Sep 2022

nice gaijin said:
Russia made a terrible business move by invading their sovereign neighbor and underestimating the backlash they'd face for it. The world may have been more distracted in 2014 when Crimea was seized, but we're all watching now and we aren't having it. Businesses are responding to popular sentiment by withdrawing from Russia. Shame for the workers to be punished for their leader's poor judgment.

This is exactly the kind of Western dogma that motivated Putin to take back Crimea and Ukraine. You dictate how non-aligning non-Western nations should expand / reclaim territories. The world was distracted by Obamas lies and weakness on the international stage, that is why.

Petaris · 28 Sep 2022

Tokyo Guy said:
This is exactly the kind of Western dogma that motivated Putin to take back Crimea and Ukraine. You dictate how non-aligning non-Western nations should expand / reclaim territories. The world was distracted by Obamas lies and weakness on the international stage, that is why.

This seems to be getting off-topic a bit. As a reminder this topic is about Toyota stopping sales and production in Russia. Please keep posts related to that topic or start a new Japan related topic if you feel this is somehow related to Japan.

nice gaijin · 28 Sep 2022

Tokyo Guy said:
This is exactly the kind of Western dogma that motivated Putin to take back Crimea and Ukraine. You dictate how non-aligning non-Western nations should expand / reclaim territories. The world was distracted by Obamas lies and weakness on the international stage, that is why.

You are either delusional or a paid shill. Russia is isolating itself and tanking its own economy. Enjoy your Vkusno & tochka.

News Toyota terminating car production and sales in Russia

thomas

Unswerving cyclist

Toyota to exit Russia, terminating auto production and sales

Toyota to end auto output in Russia over war-induced supply crunch - The Mainichi

Tokyo Guy

後輩

Petaris

Sailing away...

mdchachi

Moderator