Toyota will close its plant in St. Petersburg, Russia, and may sell it amid shortages of key parts and raw materials due to the escalating conflict between Russia and Ukraine. In March, Toyota suspended production in Russia and stopped exporting vehicles to the country following the escalation of the conflict between Russia and Ukraine. The company said on Sept. 23 that for the past six months they have been preparing the plant to resume production when conditions permit, but the company now believes there is no indication that they can restart production in the future.
Toyota said it produced 42,235 RAV4s and 38,547 Camrys at its St. Petersburg plant last year. 38,441 RAV4s were sold in Russia last year, ranking 11th on the country’s sales chart, while 31,983 Camrys were sold, according to data released by AEB.
The St. Petersburg plant, which has an annual capacity of 100,000 units, is responsible for producing the Camry midsize sedan and the RWD midsize SUV for the Russian market, and these vehicles are also exported to Belarus, Kazakhstan and Armenia, among other countries. A Toyota spokesman told the press, “If sold, the plant will no longer produce the rebadged Camry and Wingman.” Toyota said the company will retain a restructured organization in Russia to serve existing Toyota and Lexus customers.
In addition to the financial support required by law, Toyota said the company will provide assistance to employees with reemployment, retraining and benefits. The company currently employs 2,350 people in Russia, with about 1,900 working at the St. Petersburg plant and about 450 in Moscow, overseeing marketing, sales and finance operations.
A Toyota spokesman said, “We believe that about 2,000 employees will leave Toyota in Russia.” The company will retain the Moscow-based employees, who will be primarily responsible for continuing to help existing customers with parts import and distribution.
The Moscow-based AEB Automakers Council said Toyota’s sales in Russia plunged 97 percent in August this year to 221 units. Total Russian car sales for the month fell 62 percent year-on-year to 41,698 units.
