Nissan Exits Russian Market, Sells Operations And Factories To NAMI For 98 Cents

Nissan has officially announced its exit from the Russian market, selling all of its local facilities and operations to NAMI, Russia’s Central Research and Development Automobile and Engine Institute. The Japanese automaker will loose 100 billion yen ($687 million) from the sale but maintains the right to buy back the entity and operations within the next six years.

Last April, following Russia’s invasion of Ukraine, Nissan suspended production at its Saint Petersburg factory like many other automakers who were affected by the sanctions. With the ongoing war and no signs of a resolution to the conflict, Nissan took the final decision to exit the Russian market.

Also Read: Toyota Officially Shuts Down Russian Factory After Pausing Production Last March

According to the deal which will be formalized in the coming weeks, Nissan will transfer all of its Russian facilities to NAMI, which will use them for “future passenger vehicle projects” operating under a new name. The sale includes the Nissan Manufacturing Russia LLC (NMGR) legal entity, the manufacturing and R&D facilities in Saint Petersburg, and the Sales & Marketing center in Moscow.

Nissan said that all of its workers will get employment protection for the next 12 months, following the sale to NAMI. Mind you, the Russian factory was the home of production for the Qashqai, X-Trail, Murano, and Terrano, with a capacity of 100,000 vehicles per year. Makoto Uchida, Nissan President, and CEO, said: “On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years. While we cannot continue operating in the market, we have found the best possible solution to support our people”.

Reuters reports that the sale of Nissan’s Russian business cost €1 ($0.97) which explains the officially announced loss of approximately 100 billion yen ($687 million) for the automaker. Still, Nissan is positive it will maintain its full-year guidance, announcing the detailed effects of the transfer in November 2022 as part of the second-quarter results. Since the outbreak of the war, many automakers shut down their operations in Russia, although in most cases the sales are reversible.