Toyota will stop producing vehicles in its massive St. Petersburg plant in Russia starting March next year. Suspension of selling may follow but servicing and maintenance of Toyotas already in the country will continue.
The decision to close down the plant is due to continued interruption in the supply of key materials and parts. According to a statement released by Toyota Motor Co. of Japan, it has been closely monitoring the situation and evaluating the future sustainability of its operations and automotive-related businesses in Russia.
Toyota Motor Manufacturing Russia manufactures the Camry and the RAV4 in Shushary, St. Petersburg, Russia. Before the troubles in the region, Toyota produced 80,000 vehicles and sold 110,000 in 2021 more cars compared to other Japanese automakers,
“During this period we have fully retained our workforce and ensured our facility was ready to re-start production if the circumstances allowed. However, after six months, we have not been able to resume normal activities and see no indication that we can re-start in the future,” the press statement said.
The decision to terminate the production of Toyota vehicles in Russia was not an easy decision according to one of the company’s executives from Europe. The company has been in Russia for over 80 years and is the biggest car producer in the region.
“We have developed our business and our brand with the support of stakeholders around the world. We must now act in a way that allows us to protect the values and principles that our predecessors built up and be confident that we can pass them on to the next generation,” the press statement emphasized.
By trimming their assembly operations in Russia, much of the sourcing will be done in the remaining plants located in France, which produces mainly the Yaris, the UK which assembles the Corolla, and Turkey which is the central production base for the Toyota C-HR and also the Corolla, the Czech Republic which puts together for the Aygo which is known as the Wigo in the Philippines, and Portugal which makes the Land Cruiser for global consumption.
The Russian plant started production in 2007. Russian President Vladimir Putin was one of the guests at the opening of the plant. Though it is not clear if Toyota will continue to sell vehicles in the country, its current operations in Moscow will be optimized and restructured to serve existing Toyota and Lexus customers in Russia.
“We would like to thank our employees for their hard work and loyalty. In recognition of their valued contribution, we will be offering them assistance for re-employment, re-skilling, and well-being, including financial support above legal requirements,” Toyota said.
