Mazda has joined the long list of car companies leaving Russia due to the war in Ukraine, selling its local operations for just one Euro.
Japanese car-maker Mazda has joined the growing list of automotive companies abandoning Russia due to the war in Ukraine, announcing it has sold its shares in its eastern European joint venture for one Euro ($AU1.54).
In March this year, car-makers such as Ford, Mercedes-Benz, Toyota, Honda, BMW, Nissan and Renault suspended operations in Russia due to parts supply interruptions caused by the invasion of Ukraine.
Mazda’s joint venture with Russian company Sollers – operating as Mazda-Sollers Manufacturing Rus (MSMR) – stopped receiving car parts in March 2022. Mazda’s Vladivostok plant ceased operations in April 2022.
In a financial report released last week, Mazda confirmed plans to sell its 50 per cent stake in MSMR to Sollers for one Euro – equivalent to $1.54 in Australian currency.
According to Mazda, the car-maker expects it will “record an extraordinary loss of approximately 12.0 billion yen” – about $AU128 million – as a result of the sale.
Mazda’s financial hit pales in comparison to Nissan’s projected 100 billion yen ($AU1.1 billion) loss in Russia, announced after the company sold its local subsidiary to a state-owned institute – also for just one Euro ($AU1.55) last month.
Mazda added the sale of its shares in MSMR to Sollers included an agreement for the Japanese car-maker to repurchase its stake for the 1 Euro sale price within three years.
MSMR was established in April 2012, with production of the Mazda 6 sedan and CX-5 SUV commencing in October 2012 in Vladivostok for the Russian market.
While MSMR initially claimed it would produce 50,000 cars annually, by September 2015 it had built approximately 80,000 vehicles.
In 2016, the Vladivostok factory was expanded to produce the CX-9 alongside the Mazda 6 and CX-5, while a nearby engine facility for the three models was built in 2018.
According to new-car sales data from MarkLines, Mazda sold 29,177 cars in Russia last year.
Between January and October 2022, it delivered just 8949 vehicles to Russian customers.
The announcement of Mazda leaving Russia is not expected to affect Australian supply of new cars from the company.
Mazda’s decision to leave Russia due to the invasion of Ukraine follows five high-profile exits from global car-makers.
In April, Renault sold its 68 per cent stake in Russian car-maker AvtoVAZ (parent company of Lada) for just 1 ruble – equivalent to $AU0.02 at the time.
Toyota – the world’s biggest car-maker by annual sales volume – sold its Saint Petersburg factory in September, announcing it would no longer import cars to Russia.
On October 12, Nissan offloaded its shares in its Russian division to a state-owned institute for €1 ($AU1.55).
Late last month, both Mercedes-Benz and Ford announced their exits, selling their Russian operations to a local investor and joint venture partners, respectively.
The post Mazda sells Russian operations for 1 Euro appeared first on Drive.