The authorities of St. Petersburg and the automaker Toyota will consider options for selling the company’s business in the Russian Federation

The Russian division of Toyota Motor Corporation, Toyota Motor LLC, completely stops the production of cars at its plant in St. Petersburg.

According to Kommersant, citing its own sources, the Toyota plant in Shushary will be mothballed, car production will not resume there. The authorities of St. Petersburg, together with the company, will consider the option of selling the asset.

It is noted that the concern intends to “normally” part with the employees of the plant and office, who will be offered increased payments in the amount of 12 salaries.

The Toyota car factory in Shushary worked for 15 years, Russian President Vladimir Putin participated in the ceremony of laying the first stone at the site of the future enterprise in 2005. The plant’s capacity was 100,000 vehicles per year; it produced the RAV4 and Camry models as part of a SPIC signed with the Ministry of Industry and Trade. The total amount of investments from Toyota under the contract was declared at the level of 20 billion rubles.

According to the publication, the decision of Toyota Motor on the sale of the Russian asset is due to the inability to resume the rhythmic supply of components to the Russian Federation.

In early March, the company suspended deliveries to Russia and froze production in St. Petersburg. Then the concern assured that they did not plan to close the plant and leave the Russian Federation.

According to Interfax with reference to the data of the Association of European Businesses, sales of Toyota Motor in Russia in the first half of this year fell 2.8 times, to 20.3 thousand units. The market share was 5.5% (-1.2 p.p.).

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