Mazda could sell its stake in their Russian joint venture to local car manufacturer Sollers.
Mazda and Sollers currently operate a joint venture in the country and began producing vehicles together at a Vladivostok facility in 2012. In addition to building one of Sollers’ models for the local market, the factory also handles the production of the Mazda CX-5 and Mazda6.
The Japanese car manufacturer has been looking for ways to end its Russian operations since the invasion of Ukraine in February. In March, it confirmed that exports of parts to the Vladivostok plant were going to end and that production would cease when these stocks ran out. The plant produced approximately 29,000 vehicles in 2021, Nikkei Asia reports.
It is understood that Sollers is currently in talks with Mazda in buying out the carmaker’s stake in the venture.
“Sollers Auto has already developed a plan to relaunch the factory for production of other automobile brands and negotiations on this issue are currently being finalized,” Sollers confirmed in a statement.
Read Also: Toyota Officially Shuts Down Russian Factory After Pausing Production Last March
Mazda’s move to get out of Russia comes shortly after Toyota revealed that it too was withdrawing from its Russian operations. It will liquidate its local unit and end both production and sales but will continue to offer maintenance services to cars that it has already sold throughout Russia. Toyota noted difficulties in procuring parts and the need to compensate workers when confirming its exit and said that there was no prospect of resuming production in the near future due to parts shortages.
Renault Group signed an agreement to sell 100 percent of its stake in Renault Russia to the city of Moscow in mid-May and has also sold its 67.69 percent stake in local car manufacturer AvtoVAZ to the Central Research and Development Automobile and Engine Institute (NAMI).
