Toyota Motors became the first Japanese company to withdraw business from Russia in protest against Russian aggression in Ukraine. The Japanese car manufacturer has announced the cessation of sales and production of cars in the country. News Nikkei Asia.
Toyota chief communications officer Jun Nagata said at a press conference that it was a difficult decision. We will not sell our unit in Russia to any other company. However, the repair operation of cars sold earlier in the country will continue.
Toyota stopped production mainly due to difficulties in supplying car manufacturing materials and parts to the country due to Russia’s attack on Ukraine. Last March 4, the company suspended the operations of the factory located in St. Petersburg, Russia. Six months after the war, the company could not resume normal operations there. There is no indication of a future relaunch. Therefore, the risk of increasing geopolitical changes in the region also played a role in this decision, said Toyota.
Toyota Motors continued to pay workers through redeployment and maintenance in other sectors, despite suspending production in March. The company also said that the decision to stop the production activities were taken after helping the affected workers to find new employment.
Toyota will fulfill its social responsibility towards its workers and pay as compensation.