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Mazda Motor ceases operations in Russia, transfers stake in JV to Sollers — report

Mazda Motor is expected to take a huge loss totalling approximately $82 million due to its withdrawal from the Russian market

TOKYO, November 10. /TASS/. The Japanese automotive corporation Mazda Motor has decided to terminate its operations in Russia and transfer its stake in the joint venture in Vladivostok to Sollers PJSC, the company said in its financial report published on Thursday.

"The company has decided to transfer all of its equity interest in Mazda Sollers Manufacturing Rus LLC, an automobile manufacturing and sales company in Vladivostok, Russia, to Sollers PJSC, our joint venture partner, and signed a transfer agreement on October 24, 2022," according to the financial report.

The transfer price is 1 euro.

Mazda Motor is expected to take a huge loss totalling approximately 12 billion yen ($82 million) due to its withdrawal from the Russian market and the transfer of shares in the business.

Mazda Motor considered Russia as one of its most important markets and in 2012 began producing its cars in Vladivostok as part of a joint venture with Sollers. The company assembled the CX-5, CX-9 crossovers and the Mazda 6 sedan cars. However, the supply chains for the parts and assemblies necessary for this were broken due to sanctions against Russia.

Earlier in September, Japan's largest automotive corporation Toyota Motor announced a decision to completely close its assembly plant in St. Petersburg. Its activities had been suspended since March due to a disruption in the supply chain. In October, Nissan Motor Corporation approved the sale of its Russian assets to Nissan Manufacturing Rus of the Russian Federation represented by FSUE NAMI, a state research center under the Industry and Trade Ministry. The company will incur losses in the amount of about 100 billion yen ($686 mln) due to its withdrawal from the Russian market.

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