Nissan Quits and Sells Off Russian Business for a Staggering One Euro

Original image sourced from Nissan

 

Joining the fray of automakers quitting Russia’s market is Nissan, which has handed off their operations in the country for a single euro. But it isn’t the end of it just yet.

 

The Japanese company suffered a massive one-off loss of $686.5 million, or about ¥100 billion. The assets were sold off to NAMI, Russia’s Central Research and Development Automobile and Engine Institute. The sale includes a plant in St. Petersburg and its sales and marketing center based in Moscow, which may face rebranding. As part of the deal, Nissan could still buy everything back from the state-owned organization within six years. Finalization of the deal is expected to follow soon. Russian car manufacturer AvtoVaz will take care of aftersales, spare parts and maintenance of Nissan’s newer models.

Sourced from Nissan Europe Newsroom

Renault, a part of the Renault-Nissan-Mitsubishi alliance, also sold a majority of its shares to NAMI 5 months back. Employees of the factory will receive 12-months pay for compensation. Nissan, like several other international manufacturers, halted production in February-March after the country’s attack on Ukraine. Though activities are said to be resumed in September, Nissan extended the suspension, and eventually chose to pull out altogether under the reasoning of less favorable situations in Russia.

 

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p dir=”ltr” style=”line-height: 1.38;margin-top: 0pt;margin-bottom: 0pt”>While AvtoVaz and other Russian-based businesses may enjoy less competition and more potential income, the loss of options to potential buyers may upset the market. Though, it can’t be said that Nissan’s Russian market is a moneymaker, having sold 51,400 units in 2021, equalling to a 3.1% market share, according to The Moscow Times.

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