Mazda ceases business in Russia

Mazda Autoconcern will transfer its stake in the joint venture at the Mazda Sollers Manufacturing Rus plant in Vladivostok to the Russian Sollers group.

The transaction will be completed for €1, but it involves the possibility of a Japanese company buying out a stake in JV within the next three years. Due to the transfer of the stake the concern will report a loss of $82 million, Kommersant reports.

As it follows from the financial report of Japanese automaker for the second quarter of fiscal year 2023, the decision on the share transfer was made on October 24.

"The transfer procedure will be completed as soon as possible after receiving approval from the relevant authorities. The transfer agreement includes the right of Mazda to buy out its stake in the joint venture at a transfer price during the next three years," Mazda announced.

"Sollers is buying out Mazda's stake in the joint venture in Vladivostok. We are preparing to launch new products at the site's facilities next year," Interfax quoted Sollers Auto's press service as saying.

Recall, assembly of Mazda cars (crossovers Mazda CX-9 and Mazda CX-5, and sedan Mazda 6) in Vladivostok was launched in 2012. In March 2022, due to Russia's military operation in Ukraine, the supply of components for the production of cars was stopped, and in late April Mazda ceased its participation in the joint venture, explaining that there were no opportunities for business in Russia. According to the Association of European Businesses, Mazda sales in Russia in the first ten months of this year plummeted by 63.7 per cent to 8,494 units.