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State research center will take over Nissan assets in Russia — Industry and Trade Ministry

It is reported that Avtovaz carmaker will deal with after-sales service for Nissan cars and the supply of spare parts

MOSCOW, October 11. /TASS/. The Nissan Executive Committee has approved the sale of its Russian assets managed by Nissan Manufacturing Rus to the Russian Federation represented by FSUE NAMI, a state research center under the Industry and Trade Ministry, the press service of the ministry reported on Tuesday.

"The deal involves the transfer of 100% of Nissan's assets in Russia (under the management of the legal entity Nissan Manufacturing Rus) to NAMI. This includes Nissan's production and research facilities in St. Petersburg, as well as a sales and marketing center in Moscow," the statement says.

Under the deal Nissan Manufacturing Rus has an option to buy back its. This right can be exercised within next 6 years.

According to Deputy Prime Minister and Industry and Trade Minister Denis Manturov, Avtovaz carmaker will deal with after-sales service for Nissan cars and the supply of spare parts.

"Nissan Manufacturing Rus transfers its assets to the state - this transaction is important for the industry. As a result of negotiations, it was possible to reach a format in which the enterprise remains operational: key competencies, the production cycle and jobs are preserved - and this is about 2,000 employees of the enterprise. NAMI has the opportunity to attract other companies as production partners, to create joint ventures," Manturov said as quoted by the press service.

The statement quotes Nissan President and CEO Makoto Uchida, saying that the deal is the best possible solution to support employees.

"On behalf of Nissan, I would like to thank our Russian colleagues for their contribution to the development of our business over the years. We are currently unable to reopen our facilities, so the best possible solution has been found to support employees," he said.

About production

Earlier, the Nissan plant in St. Petersburg suspended operation from March 14 due to interruptions in the supply of components. In May, speaking at a press conference following the release of the company’s 2021 financial results, Makoto Uchida said that the automaker Nissan Motor suspended operations in Russia and Ukraine, presumably for a year.

The Nissan plant in St. Petersburg was opened in 2009. Its production capacity is up to 100,000 cars per year. In 2021, 43,000 cars rolled off its assembly line. Basically, the company produced crossovers Qashqai and X-trail.

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