Farewell to the big brand, it’s definitely over: the official closing

Farewell to the big brand, it’s definitely over: the official closing

Farewell to Russia an important global car brand: Moscow offices and the St. Petersburg plant were sold out. That’s what it is.

The effects of the war in Ukraine naturally have repercussions for all markets, with serious consequences from a commercial and image point of view for many brands, forced to take unexpected and oftentimes decisions to stop production on Russian soil. after Renault Another car brand “plants” Russia and says stop: and the Aprilwhose Executive Committee in Yokohama approved an operation similar to the one carried out by France last spring. It will be really difficult to get back to normal in the short term And here there is no escape from the decision to stop the production and development of the brand in Russia. In fact, there are serious consequences for the purchase of materials, as well as for the recovery of raw materials. So many difficulties.

Nissan in Russia: production halted

All activities – including the plant and the Saint Petersburg Research and Development Center as well as the Moscow offices (sales and marketing) – will therefore come under the control of the Russian Automotive Research Institute growing (Central Institute for Research and Development of Automobiles and Engines) Token number 1 euro. Thus, the assets will become the property of the Russian state. It is an operation that will have an overall impact on the estimated budget of around 700 million euros with a The negative impact on the profits of the Japanese company exceeds 300 million euros. Nissan will completely exit the market of the Russian Federation, but in the next few years (until 2029 in particular) the option to buy back assets is possible. Of course, it will be necessary to monitor the developments of the war, not only politically but above all economically.

See also  They discovered an increase of up to 875% in the prices of basic products in supermarkets

Renault made the same choice as Nissan: away from Russia. And the data…

What will happen to all employees? According to the latest rumors, Nissan’s production and research and development facilities in Saint Petersburg and the sales and marketing center in Moscow will operate under a new name. Under the new ownership of the NMGR entity, all Nissan employees in Russia will receive at least job protection for at least 12 months.

For Renault already the negative effects, but Nissan has put the steering wheel behind
For Renault already negative effects, Nissan anyway put the wheel: away from Russia, at least for now

This Nissan pick has been well thought out Despite the fact that partial data has already arrived, it is certainly not reassuring, regarding sales trends for those who made the same choice a few months ago, namely Renault. Indeed, in July, the French automaker announced a significant drop in sales for the first half of 2022 after discontinuing its operations in Russia, which represented its second largest market. The group said its global sales fell 29.7%. compared to last year with just over 1 million vehicles (1,000,199 units). Excluding the activities of Avtovaz and Renault Russia, the number of units sold is By 12% on an annual basis.

Leave a Reply

Your email address will not be published. Required fields are marked *