32.1 C
Monday, June 24, 2024

Japanese carmaker leaving Russia

Mazda will transfer its stake to a joint venture partner

Japanese carmaker Mazda is winding down its business in Russia, the company announced in its financial report on Thursday.

The Company has decided to transfer all of its equity interest in Mazda Sollers Manufacturing Rus [MSMR], 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,” the report stated.

According to Mazda, the transfer will be carried out for a symbolic €1. The company also noted it expects to record “an extraordinary loss” of about ¥12 billion ($84 million) due to its decision to quit the project.

Mazda stopped shipping parts to its Vladivostok plant back in March, while the venture itself ceased its operations at the end of April.

Although [Mazda] has continued discussions with Sollers, it sees no path to restarting the business, hence we have agreed to transfer all of our equity interest to Sollers,” the company noted.

The Russian automobile holding confirmed the news of the transfer to the Autonews outlet. Sollers said that it had already received approvals for the deal from Russian officials, but the transfer has not yet been formally carried out.

Read more

FILE PHOTO. Ford Sollers plant, Kazan, Russia.
Major US carmaker leaves Russia

Sollers will buy Mazda’s stake in the joint venture and plans to restart the plant on a new model lineup next year,” a company representative told Autonews.

The transfer may be concluded by December, Interfax reported later in the day, citing a source privy to the negotiations. According to Mazda, it will retain the option to buy out its stake for the next three years.

MSMR has been operating in Russia since 2012. Its production line included Mazda CX-9 and Mazda CX-5 crossovers and Mazda 6 sedan.

For more stories on economy & finance visit RT’s business section

https://ift.tt/mHy78Bl 11, 2022 at 02:18PM
from RT – Daily news

Most Popular Articles