Toyota ends car manufacturing in Russia

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Danette Breitenbach

Toyota has made the decision to end vehicle production at its Saint Petersburg plant in Russia. Manufacturing operations at the plant were halted by Toyota on 4 March due to the interruption in the supply of key materials and parts.

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Toyota said its workforce at the plant was retained during the period of suspension and that the facility was ready to re-start production if the circumstances allowed. However, after six months, Toyota has not been able to resume normal activities and sees no indication that it can restart in the future.

The automotive manufacturer said the following in a statement:

The decision to terminate the production of Toyota vehicles in Russia is not one that we have taken lightly. Over the last 80 years, 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.

Toyota said it's determined that its operations in Moscow need to be optimised and restructured―with the clear objective of retaining an effective organisation to continue supporting the retail network in providing ongoing service to 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 concluded.