Toyota to end vehicle production in Russia

Totota St. Petersburg

Toyota has announced that it will halt its vehicle production in Russia.

KEY TAKEAWAYS

  • Where did Toyota attribute the interruption in operations?

    Toyota said that the interruption in operations was caused by the disturbance in supply of key materials and parts.
  • When did Toyota first suspend its vehicle production in Russia?

    The Japanese automotive marque suspended its operations in Russia in March 2022.
  • The Japanese automaker’s decision to terminate its vehicle production at its Saint Petersburg plant followed the suspension of manufacturing operations starting March 4. The interruption in operations, Toyota said, was due to disturbance in supply of key materials and parts.

    The company said that while monitoring the situation, its workforce was retained and its facility was ready to re-start production should circumstances allow. “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,” Toyota explained.

    Totota St. Petersburg

    “The decision to terminate 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,” the company added.

    Further, Toyota said that the firm has also determined that its operations in Moscow “need to be optimized and restructured ― with the clear objective of retaining an effective organization to continue supporting the retail network in providing ongoing service to existing Toyota and Lexus customers in Russia.”

    Meanwhile, Toyota assured its manpower that they will be given assistance for re-employment, re-skilling and well-being, including financial support above legal requirements.

    Earlier, Toyota said that its global production target of approximately 9.7 million units is still unchanged despite announcing that seven of its facilities in Japan will suspend its production next month.

    Photos from Toyota Europe

    Also read:

    Toyota sells 797K vehicles in Jul. 2022

    Toyota to suspend production in some Japan plants amid COVID-19 outbreak, failure of equipment

    Toyota reveals April sales, production, export results

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