Nissan to Exit Russian Market. Maybe

Carlos Ghosn then head of the Nissan Renault Alliance in 2012 announcing a takeover of Russian avtovaz. The Alliance sold 878,990 cars in Russia in 2011 – its third largest market that year.

Nissan’s Executive Committee has approved the sale of its Russian operations to NAMI, the Central Research and Development Automobile and Engine Institute. This follows the suspension last March of operations in the market. Under the new ownership of the NMGR*, a State Research Center of the Russian Federation, all of Nissan’s employees in the market will receive employment protection for 12 months.

The sale is expected to be formalized in the coming weeks following approvals from the authorities, which sure looks inevitable since it’s being sold to the Russian government. The terms of the sale are hedged. It would allow Nissan the option to buy back the entity and its operations within the next six years. It’s the latest example of global automakers shutting operations in a totalitarian state. Will China be next?

The sale will transfer all Nissan operations in Russia under the Nissan Manufacturing Russia LLC (NMGR) legal entity to NAMI for future passenger vehicle projects. This covers Nissan’s manufacturing and R&D facilities in St. Petersburg, and Sales & Marketing center in Moscow, which will operate under a new name.

Nissan will take a charge of ~ ¥100 billion with this exit. However, Nissan said will maintain its full-year guidance. Details will be reported after further assessment as part of the disclosure during the Q2 results in November 2022. Nissan assumed zero activity in the market in this fiscal year. Nissan said it remains on track to achieve its business objectives under the Nissan NEXT transformation plan

*NMGR “The scientists and design engineers of the institute were directly involved in the creation, testing and putting into the mass production of practically all Russian vehicles, from the first passenger cars to heavy-duty trucks, such as KAMAZ, MAZ, KrAZ, BelAZ and other, many engines and tractors. In 1920s and 1930s the production of the first cars developed by the institute began.

AutoInformed on

• Toyota Ending Production at Saint Petersburg Plant
• Ford “Suspends” Russian Van Manufacturing and Sales
• State of Our Union and the Auto Industry
• Ukraine – EU Truck Sectors at Immediate Risk. Others to Unfold
• Nissan Posts First Annual Profit in Three Years.