SEOUL: South Korea’s Hyundai Motor is considering a decision on its Russia operations that could include selling its manufacturing plant there, a local media reported today.
Hyundai Motor recently submitted to management a report analysing the situation and future prospects in Russia, Dong-a Ilbo newspaper said, citing an unidentified auto industry source.
The newspaper said Hyundai’s report includes the company’s analyses of the scenarios and impact of the sale of the Russia plant, citing the difficult environment to conduct normal financial activities.
Hyundai Motor was not immediately available for comment when contacted by Reuters.
Hyundai Motor, which together with affiliate Kia Corp is among the world’s top 10 biggest automakers by sales, builds about 200,000 vehicles per year in Russia, about 4% of its global production capacity.
Many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment because of sanctions and an exodus of Western manufacturers since Moscow sent armed forces into Ukraine on Feb 24.
Hyundai’s operations at its St Petersburg plant have been suspended since March.
Last week, Nissan Motor Co Ltd said it would hand over its business in Russia to a state-owned entity for 1 euro and book a loss of about US$687 million, the latest car maker to respond to the Russian invasion of Ukraine.