Nissan issued a press release announcing that it will leave the Russian market and sell its entire operation to NAMI for approximately 1 Euro, or around $0.97. They suffered a loss of around $687 million as a result of the procedure. A number of nations, including those that produced some essential parts used in the construction of automobiles, had imposed sanctions on Russia. Nissan has been forced to shut down its operations in Ukraine since Russia invaded the nation as it waits for essential supplies that would have allowed it to continue making cars.
Another Japanese automaker, Mitsubishi, which was once a partner in the Renault-Nissan-Mitsubishi alliance, is also thinking about leaving the Russian market. Several nations were severely impacted by the sanctions placed on Russia and had significant supply chain disruptions. All three factories were thus compelled to shut down their production lines in March of this year.
Nissan then issued a statement saying that they will observe the situation and then determine what to do. Nissan, however, made the decision to leave the market since things have only become worse since then, with Russia enlisting adult and physically fit males for the conflict. Renault, on the other hand, left the market in May of this year when they sold their ownership part in the Russian automaker Avtovaz to a Russian investor. Mitsubishi is now the sole remaining producer of the trio in Russia.
Near St. Petersburg, the old capital of Russia, Nissan operated one of the largest auto manufacturers in the country. According to a report, the factory would remain operational as a vehicle production facility but will only produce cars for the Russian army. Nissan and Renault are now debating how to proceed with their collaboration. They’ll likely be working on a brand-new electric car initiative with Renault as its leader.
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