ST. PETERSBURG, Russia—Toyota has decided to end vehicle production at its assembly plant here.
On March 4, the automaker suspended manufacturing operations at it plant in St. Petersburg due to the interruption in supply of key materials and parts. For the past six months, the company had fully retained its workforce to ensure the factory would be ready to restart production if circumstances allowed.
Now, with no indication that the war in Ukraine will end any time soon, Toyota has opted to cease vehicle production in Russia.
“Over the last 80 years, we have developed our business and our brand with the support of stakeholders around the world,” the company said in a statement. “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.
“We have also determined that our operations in Moscow need to be optimized and restructured―with the clear objective of retaining an effective organization to continue supporting the retail [and service] network…in Russia.”
Toyota will offering financial assistance to plant workers, as well as help with re-employment and re-skilling.