Mazda leaves Russian market

Japanese carmaker Mazda is winding down its business in Russia, the company announced in its financial report this week.

“The Company has decided to transfer all of its equity interest in Mazda Sollers Manufacturing Rus [MSMR], an automobile manufacturing and sales company in Vladivostok, Russia, to Sollers PJSC, our joint venture partner, and signed a transfer agreement on October 24, 2022,” the report stated, according to Russia Today.

According to Mazda, the transfer will be carried out for a symbolic €1. The company also noted it expects to record “an extraordinary loss” of about ¥12 billion ($84 million) due to its decision to quit the project.

Mazda stopped shipping parts to its Vladivostok plant back in March, while the venture itself ceased its operations at the end of April.

“Although [Mazda] has continued discussions with Sollers, it sees no path to restarting the business, hence we have agreed to transfer all of our equity interest to Sollers,” the company noted.

The Russian automobile holding confirmed the news of the transfer to the Autonews outlet. Sollers said that it had already received approvals for the deal from Russian officials, but the transfer has not yet been formally carried out.

The transfer may be concluded by December, Interfax reported later in the day, citing a source privy to the negotiations. According to Mazda, it will retain the option to buy out its stake for the next three years.