Nissan’s departure from Russia is already a reality. The car company has approved the sale of its local operations to NAMI, the Central Institute for Research and Development of Automobiles and Motors. The terms of the agreement include a clause that will allow Nissan to buy back the entity and its operations within the next six years.
The Russian automobile market continues to face numerous challenges and problems directly derived from the sanctions imposed by the armed conflict in Ukraine. In recent times we have witnessed how a long list of brands and manufacturers have decided to leave Russia. A list that is now added nissan.
The departure of Nissan was something that was taken for granted. Even more so when the Renault Group did the same a few months ago. However, the details of how the abandonment process of one of the most important automobile markets that we can find in Europe would be carried out remained to be known. These details have been officially announced.
Nissan leaves Russia but does not rule out its return
The Executive Committee of Nissan has approved a few hours ago the sale of its Russian operations to NAMI, the Central Institute for Research and Development of Automobiles and Motors. A sale that will transfer all of Nissan’s operations in Russia under the legal entity Nissan Manufacturing Russia LCC (NMGR) to NAMI for future passenger vehicle projects.
The agreement also includes the production and R&D center that Nissan has in St. Petersburg and the Sales and Marketing Center located in Moscow. They will be operating under a new name.
The agreement also includes current NMGR employees receiving 12-month job protection. The sale is expected to be formalized in the coming weeks once it receives the approval of the relevant authorities. A sale announcement that comes after Nissan ceased operations in Russia last March.
A very important part of the agreement that is worth highlighting is that Nissan has reserved the option to buy back the entity and its operations within the next six years.. Therefore, a priori, we are not facing a definitive solution. It is possible that in just a few years we will see how Nissan re-enters the Russian market.
Russia, an important market for Nissan
The decision of Leaving this market will have an impact of approximately 690 million euros in brand accounts. Makoto Uchida, CEO of Nissan, has commented that it is the best solution to support the Russian workforce and, logically, reserve the right to return in a short space of time: “Although we cannot continue operating in the market, we have found the best possible solution to support our people.”
In the convulsive year 2021 marked by the stock crisis in dealerships due to the global shortage of microchips, Nissan was the ninth best-selling car brand in Russia with 51,338 units. Its most popular model in this market is the Nissan Qashqai, followed by the X-Trail. All this without losing sight of the Nissan Terrano, a Dacia Duster highlighted.
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