TOKYO — Nissan Motor Co said Tuesday that it was suspending production at its St. Petersburg plant between March 16 and March 31 due to weak sales in the Russian market.
Japan's No.2 automaker will not extend temporary contracts at the factory and will suspend hiring, a spokeswoman said.
Industry-wide new car sales in Russia plunged 38 percent in February from the same month a year earlier, continuing a sharp decline in 2014 as the economy weakened due to lower oil prices and Western sanctions over Moscow's role in the Ukraine crisis.
The ruble also tumbled last year, forcing consumers to put off large purchases and automakers to raise prices.
The tough market has also prompted General Motors Co to announce plans to idle its Russian plant for eight weeks starting in late March, after it had already cut one of the two shifts at the factory in September.
Nissan builds the X-Trail, Murano, Teana and Pathfinder models at the St. Petersburg factory. It also has local production of other models at factories owned by top Russian automaker Avtovaz, in which Nissan and Renault SA jointly hold a majority stake.
Nissan has plans to eventually double production capacity in St. Petersburg to 100,000 vehicles a year, and said Russia remains an important long-term investment.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.