Toyota closes factory in Russia after parts supply interruption

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Toyota said on Friday that it had decided to end vehicle production in Russia due to a disruption in supplies of key materials and parts.

The automaker suspended production in St Petersburg in March because of supply chain problems and stopped importing into Russia.

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“During this period, we fully maintained our workforce and ensured that our facilities were ready to restart production if circumstances allowed,” the company said in a statement.

“However, after six months, we have not been able to resume normal activities and we see no indication that we will be able to restart in the future.”

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The company said its Moscow operations needed to be restructured, but that it would continue to support its retail network in providing services to existing Toyota and Lexus customers.

“We will be offering (staff)…re-employment, re-skilling and welfare assistance, including financial support beyond legal requirements,” he said.

The Russian newspaper Kommersant, which first reported on the plans, said the factory, which has a capacity of 100,000 units a year and produced the Camry and RAV4 models, will be preserved and could be sold in the future.

Russia’s Ministry of Industry and Commerce said it is working alongside regional authorities on ways to develop the site.

Source: CNN Brasil

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