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.
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About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.