Nissan Just Halted Its Production in Russia for Six Months
Nissan’s response to Russia’s invasion of Ukraine lags behind other automakers. How will a longer production pause affect the car brand?
Written by Andrew Koole
Reviewed by Kathleen Flear
Nissan
announced at the end of June that it will extend its production halt in Russia for the first half of the business year. Logistics issues forced the company to stop assembly lines in the country at the beginning of the war in Ukraine. But while international pressure drove other automakers completely cut ties with Russia, Nissan tried to keep business going..
Nissan reluctantly follows the auto industry out of Russia
When Russia invaded Ukraine, many automakers had tough decisions to make. Car companies like Volkswagen, Stellantis, and Volvo responded by suspending production and sales in Russia, effectively stopping all business there.
Nissan and its French affiliate
Renault
, on the other hand, were criticized for continuing business in Russia. And while Renault pulled out of its partnership with major Russian automaker AutoVAZ, Nissan simply stopped production at its plants.Even now, as the company extends its production pause, Nissan says the decision was made due to the likelihood that the war will become “more serious and prolonged.”
Its position, while unpopular internationally, is in line with most of Japan.
Forbes
says only 2.4% of Japanese companies doing business in Russia have severed ties with the country.Let Jerry find your price in only 45 seconds
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Nissan will take a hit from its production halt
Nissan might’ve put off extending its production halt in Russia longer than most, but that hasn’t helped it avoid losing money from its business in the country.
CarScoops
says the company has forecasted a $499 million hit for the fiscal year ending March 31, 2023.Most of that loss will result from the closure of the company’s St. Petersberg factory which has the capacity to produce 100,000 vehicles a year.
Models built there include the Murano, Nissan’s two-row crossover, as well as models sold outside of the U.S. like X-Trails, Qashqais, and Terranos.
But sales are suffering, too. Even as dealerships remain open, the number Nissan sold in Russia has already dropped by 32.5%.
Will Nissan’s production pause in Russia affect Nissan owners in the U.S.?
Nissan’s reluctance to severe ties with Russia probably won’t encourage you to buy a
new car
from the company. But many Americans rely on the Japanese car brand for work as well, from factory workers in Tennessee and Mississippi to sales reps in communities across the country.On top of that, Nissan offers some of the most affordable new vehicles on the market, including the $16,500 Versa, the $21,000 Sentra, and the $21,300 Kicks.
Car insurance
for Nissans also averages pretty low, but coverage can vary pretty widely, depending on the model and the driver. If you want cheap car insurance quotes fast, your best bet is to shop with
Jerry
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.MORE: War in Ukraine Will Push Volkswagen to Shift More Production to North America
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