Russian carmaker Sollers in talks with Mazda

MOSCOW Russian automaker Sollers is in talks with Mazda Motor Corp about buying the Japanese company's stake in the Russian joint venture, Sollers said on Monday as Mazda prepares to wind down operations in Russia.

Mazda, which sold 30,000 cars last year in Russia, said in March that parts of the company's Vladivostok plant were going to end and production would cease when stocks ran out. The Nikkei newspaper reported on Saturday the talks with Sollers.

Sollers said it was in talks with Mazda about stopping car production in Vladivostok and buying Mazda's stake in the venture.

Sollers Auto has already developed a plan to relaunch the factory for production of other automobile brands, and negotiations on this issue are currently being finalised, Sollers said in a statement.

It didn't give a timeframe for stopping production at the Vladivostok plant.

A Mazda spokeswoman said the company was talking about ending vehicle production in Vladivostok, without giving any details.

Mazda's Japanese rival Toyota Motor Corp said on Friday it had decided to end vehicle production in Russia due to the interruption of supplies of key materials and parts.

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