By KYIV. Nov 1 (Interfax-Ukraine) – Toyota Motor Corporation has estimated the costs associated with stopping car manufacturing in Russia at JPY 97 billion, or over $650 million at the current exchange rate, according to the Japanese automaker’s financial statements for the second quarter of the current fiscal year that ended on September 30.
As Toyota chief Accounting Officer Masahiro Yamamoto said at a press briefing on Tuesday, the losses due to a partial withdrawal from Russia are associated with the cost of laying off employees and depreciating assets.
Toyota Motor LLC, the automaker’s Russian division, at the end of September announced the complete end to car manufacturing in St. Petersburg. The company clarified that it has maintained a full-time staff since halting car manufacturing in early March, with employees numbering 2,350 at the end of September.
Russia’s Industry and Trade Ministry noted that the company would maintain after-sales service for Toyota and Lexus cars on the Russian market, as well as support the local dealership network. The ministry added that it was working on possible scenarios for developing the St. Petersburg site with the St. Petersburg authorities.
