Toyota will permanently shutter production at its sole manufacturing site in Russia, the company announced Friday.
The automaker suspended production at its St. Petersburg facility on March 4, weeks after Russia’s invasion of Ukraine. Toyota cited component constraints as the reason for the moratorium at the time. The company retained its workforce and maintained the facility to restart production if the situation allowed.
“Since then, we have been closely monitoring the situation and evaluating the future sustainability of our business in Russia,” Toyota said in a statement. “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 said it will restructure operations in Moscow to continue to support its retail network and provide service to existing Toyota and Lexus customers in Russia.
Employees affected by the closure will also receive support from Toyota for re-employment, new skills training and “well-being including financial support above legal requirements,” according to the news release.
Auto companies such as Ford Motor Co. and Mercedes-Benz were quick to pause or terminate business operations in Russia when the country invaded Ukraine earlier this year, and now more businesses are making long-term decisions about their future in the country.
“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,” Toyota said in a statement.
