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Mazda Discussing Closing Plant in Russian Far East – Nikkei

Mazda said in March exports of parts to the Vladivostok plant were going to end and production would cease when stocks ran out. But it has yet to say what it will do now.


Mazda is considering ending production at its plant in Russia's Far East, Nikkei says.
The Mazda logo is seen at the Geneva International Motor Show in Switzerland on March 5, 2019. Photo: Pierre Albouy, Reuters.

 

Japan’s Mazda Motor is considering ending car production at a joint venture plant in Vladivostok in the Russian far east, Nikkei newspaper reported on Saturday.

The move comes after rival group Toyota announced on Friday that it had decided to end vehicle production in Russia due to the interruption in supplies of key parts and materials, due to the war in Ukraine.

Mazda, which sold 30,000 cars in Russia last year, said in March that exports of parts to the plant were going to end and production would cease when stocks ran out.

The factory is operated with Russian automaker Sollers. It is not known if Sollers would continue operating the factory on its own or with another partner, or whether the plant would be forced to close.

The Japanese carmaker has not made a decision about ending vehicle sales and maintenance operations in Russia, the paper said. There was no timeframe for stopping production at the Vladivostok plant.

A Mazda spokesperson was not immediately available for comment.

Many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment because of sanctions and an exodus of Western manufacturers since Moscow sent armed forces into Ukraine on February 24.

The crisis in Ukraine has intensified with Russian President Vladimir Putin announcing a call-up on Tuesday of 300,000 reservists and threatening to use nuclear weapons – a stance that has been condemned by many countries at the United Nations General Assembly in New York this week.

Even countries such as China and India, which have close ties with Moscow, are now urging a peaceful resolution of the conflict.

 

  • Reuters with additional reporting and editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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