Japan’s Toyota Motor Corp ( 7203.T ) said on Friday it had decided to halt car production in Russia due to disruptions in supplies of key materials and parts.

Toyota suspended production in St. Petersburg in March due to supply chain problems and halted imports to Russia.

“During this period, we have fully retained our workforce and ensured our facility is ready to resume production should circumstances permit,” the statement said.

“However, after six months, we have not been able to resume normal operations and see no indication that we can resume operations in the future.”

Toyota said its operations in Moscow require restructuring, but it will continue to support its retail network to serve existing Toyota and Lexus customers.

“We will offer (staff) re-employment, retraining and welfare assistance, including financial support beyond legal requirements,” Toyota said.

Russian newspaper Kommersant, which first reported the plans, said the plant, which has a capacity of 100,000 units a year and makes the Camry and RAV4 models, will be retained and could be sold in the future.

The Ministry of Industry and Trade of Russia reported that it is working with regional authorities on the development of the site.

Many factories in Russia have suspended production and laid off workers due to a shortage of high-tech equipment due to sanctions and an exodus of Western manufacturers after Moscow sent armed forces into Ukraine on February 24.

Renault has sold its controlling stake in Russian carmaker Avtavaz ( AVAZI_p.MM ) to a Russian scientific institute, reportedly for one ruble.

Luxury car makers such as Jaguar have halted exports to Russia, while Ford and BMW have halted production.

Volvo in July began laying off some of its staff in Russia – which accounted for 3% of the group’s net sales last year – after suspending sales, service and production in February.

Tire manufacturers Michelin and Nokian are also planning to leave Russia. Michelin said supply chain problems linked to the sanctions made it impossible to do business in the country.

Source by [author_name]

Previous articleCompute North files for bankruptcy as Cryptomining data center owes up to $500 million
Next articleAccused Russian Botmaster RSOCKS Arrested, Requests Extradition to US