Toyota to close plant in Russia

Toyota to close plant in Russia

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

In March, the automaker suspended 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 payoffs to the staff, as well as retain after-sales service of Toyota and Lexus cars and maintain its dealer network, the ministry said.

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

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 shut down production due to shortages of high-tech equipment and an exodus of Western manufacturers after Moscow sent armed forces into Ukraine on February 24.