Nissan Exiting The Russian Market, NAMI To Take Over

Nissan is exiting Russia, as the sale of its Russian operations to NAMI, the Central Research and Development Automobile and Engine Institute was recently approved.

This forthcoming announcement follows the suspension of operations in said market that initially happened in March.

The sale will transfer all Nissan operations in Russia under the Nissan Manufacturing Russia LLC (NMGR) legal entity to NAMI for future passenger vehicle projects. 

It will cover Nissan’s manufacturing and R&D facilities in St. Petersburg, and Sales & Marketing centre in Moscow, which will operate under a new name.

Under the new ownership of NMGR, all of Nissan’s employees in the market will receive employment protection for 12 months. 

For context, the sale is expected to be formalised in the coming weeks following approvals from the relevant authorities. 

Notably, terms of the sale would allow Nissan the option to buy back the entity and its operations within the next six years.

Plus, Nissan will take a one-off impact of around JPY 100 billion (MYR 3,192,874,030) from this exit, while still maintaining its full-year guidance.

Details will be reported after further assessment as part of the regular disclosure during the second quarter results in November 2022.

Nissan’s president and chief executive officer, Makoto Uchida, concluded, “On behalf of Nissan, I thank our Russian colleagues for their contribution to the business over many years. While we cannot continue operating in the market, we have found the best possible solution to support our people.”