Mazda sells stake in Russian joint venture for €1
The car exodus continues in Russia as Mazda becomes the latest in a long line of automakers to announce production shutdowns.
A press release on the latest financial results hides news about Zoom-Zoom’s decision to divest its 50:50 joint venture with local automaker Solars. The latter will buy half of the MSMR company “prince” for 1 euro.
But bye for now, the deal stipulates that Mazda can buy a 50% stake for the same amount of €1 anytime in the next three years.
Renault and Nissan made similar decisions earlier this year, as they both sold little or no stake in their joint ventures, leaving the door open for a return someday.
In its financial report, Mazda said it would post a big loss of about 12 billion yen, equivalent to about $85.6 million or 83 million euros.
The decision was taken “due to the crisis in Ukraine in February 2022”. The Japanese automaker stopped sending parts to MSMR in March and shut down operations completely a month later.
There have been discussions between the two parties, but Mazda “doesn’t think there is any way to get the business back on track.”
Officially known as Mazda Sollers Manufacturing Rus, the company has been operating a plant in Vladivostok since October 2012 with a production capacity of 50,000 units per year.
Products include the CX-30, CX-5 and CX-9 SUVs along with 6 sedans. Last year, Mazda’s share of the Russian automobile market was 1.8%.
Mazda’s decision to sell its stake in the MSMR joint venture does not mean the end of the Vladivostok plant, as a Solus spokesman told Reuters it would resume operations in 2023 with a “new model lineup.”
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