Toyota Jun Nagata CCO decides to end local production in Russia to “properly guarantee local workers” – Car Watch

Camry to end production at St. Petersburg manufactures RAV4

St Petersburg, Russia’s second largest city, was the capital of Imperial Russia and was known as Leningrad during the Soviet era. Toyota Motor Corporation and TME (Toyota Motor Europe) announced on September 23 that they will terminate the production business at the St. Petersburg plant of Toyota Russia GmbH (TMR-SP) located in St. Petersburg.

The immediate cause was the beginning of the Russian-Ukrainian conflict on February 24 (the Russian invasion of Ukraine on the Japanese side, and a special military operation on the Russian side). Since then, various economic measures have been taken against Russia, which have blocked the supply of parts and made it impossible for TMR-SP to acquire the necessary parts for production.

According to Toyota’s announcement, “Since then, we have continued to prepare for the resumption of production, such as daily maintenance of the production line.” Termination of production activities in Russia because Toyota cannot produce the products it is aiming for, and if the current situation continues, it will not be possible to provide adequate support to its Russian employees who have worked together to make good cars. I decided there was no other choice. “It appears that the decision was made while Toyota was no longer able to make cars unique to Toyota and while it was still possible to provide adequate support to its employees.

Regarding this announcement, Jun Osada, Chief Communications Officer of Toyota Motor Corporation said, “At this time, the local ruble is still available. , and dealers, I thought it would be difficult do something decent for all of you unless it’s now.”

The problem of Toyota Russia has always been raised as a management issue with President Akio Toyoda, and various issues have been discussed.

If the supply chain such as parts procurement stops functioning and Toyota cannot produce cars, the company’s cash (rubles) will eventually run out. “For all of our employees who have dedicated their lives to us, we cannot let them leave the company without being able to collect anything,” said Osada, Toyota’s COO. It means you have made a decision.

The production base of Toyota in Russia is the Limited Liability Company “TOYOTA MOTOR” in Saint-Petersburg (TMR-SP). This plant began local production of the Camry in December 2007 with an annual production capacity of 50,000 units. Currently, it produces Camry and RAV4, and in Russia it was sold mainly to high income earners, so “There is an impact on management” (Osada COO). Although factory production and sales of new cars will cease, regarding dealer business such as service and support, “Basically, I would like to continue to maintain service,” and will respond to buyers as long as parts are available.

Meeting with the Mayor of St. Petersburg

Regarding the end of this production project, we also spoke to the Russian side, saying, “We had a meeting with the mayor of St. Petersburg, where the plant is located, and the mayor said, ‘It’s a shame to pull back. contribution to St. Petersburg in 2015.’ I would like to thank you very much,” said COO Osada. Toyota Russia has 2,350 employees, about 500 of whom will work at the center in Moscow, which will be reduced and reorganized to provide support services.

Also, the announcement was made at 22:30 Japan time because it was announced at the same time as Russia. The announcement was made according to Russian time.

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