Toyota to close plant in Russia

Toyota to close plant in Russia

MOSCOW Japan's Toyota Motor Corp has decided to close its plant in Russia, Russia's Ministry of Industry and Trade said in a statement.

In March, the automaker shut down production in St Petersburg due to supply chain disruptions and stopped vehicle imports into Russia.

Toyota will be responsible for all social obligations, as well as significant additional pay-offs to staff, as well as retain after-sales service of Toyota and Lexus cars, as well as maintain its dealer network, the ministry said.

The Russia's Kommersant newspaper first reported the plans on Friday, citing unnamed sources.

The factory, which has a capacity of 100,000 units a year and produced the Camry and RAV 4 models, will be preserved and may be sold in the future, according to Kommersant's sources.

The ministry and regional authorities are working on possible scenarios to develop the site, the ministry said.

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