The Toyota Motor Manufacturing Russia plant, which was established in 2012, has ceased operations due to the company's decision to exit the Russian market.
The plant, located in St. Petersburg, produced a range of vehicles including the Corolla and Camry models.
Toyota's exit from the Russian market is a significant development in the automotive industry.
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Toyota to Exit Russia
Toyota has decided to end vehicle production at its Saint Petersburg plant in Russia.
The company suspended manufacturing operations on March 4th due to an interruption in supply of key materials and parts.
Toyota has fully retained its workforce and ensured the facility was ready to re-start production if circumstances allowed.
However, after six months, the company has not been able to resume normal activities and sees no indication that it can re-start in the future.
The decision to terminate production of Toyota vehicles in Russia is not one that the company has taken lightly.
Over the last 80 years, Toyota has developed its business and brand with the support of stakeholders around the world.
Toyota will restructure operations in Moscow to continue supporting its retail network and provide service to existing Toyota and Lexus customers in Russia.
Employees affected by the closure will receive support from Toyota for re-employment, new skills training, and well-being, including financial support above legal requirements.
The company has also determined that its operations in Moscow need to be optimised and restructured.
This decision is likely due to the ongoing supply chain problems and sanctions related to the country's invasion of Ukraine.
Toyota is not the only company to have paused or terminated business operations in Russia due to the conflict.
Other companies such as Ford Motor Co. and Mercedes-Benz have also made similar decisions.
Toyota's decision to exit Russia is a significant one, considering the company's long history in the country.
Impact on Toyota's Operations in Russia
Toyota has decided to end vehicle production at its Saint Petersburg plant in Russia due to a shortage of key materials and parts since the country invaded Ukraine.
The company suspended production on March 4th and retained its workforce, keeping the facility ready to restart production if circumstances allowed.
After six months, Toyota was unable to resume normal activities and sees no indication that it can restart production in the future.
Toyota will permanently shutter production at its sole manufacturing site in Russia, a decision that has not been taken lightly.
The company will restructure operations in Moscow to continue supporting its retail network and provide service to existing Toyota and Lexus customers in Russia.
Employees affected by the closure will receive support from Toyota for re-employment, new skills training, and well-being, including financial support above legal requirements.
Toyota's decision is consistent with other auto companies that have paused or terminated business operations in Russia due to the country's invasion of Ukraine.
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The company's operations in Russia accounted for a significant portion of its business, with some companies like Volvo laying off staff and Michelin and Nokian planning to quit Russia altogether.
Toyota's decision to end production in Russia is a long-term one, with the company citing the interruption in supplies of key materials and parts as the reason for the closure.
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