Categories: Market

At a symbolic price: Automaker Hyundai is about to sell its production in Russia

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South Korean automaker Hyundai is about to sell its production facilities in Russia for a symbolic price of 10,000 rubles (96 francs). (archive image)

South Korea’s industry leader, the board’s St. It said it has approved plans to sell St. Petersburg-based Hyundai Motor Manufacturing Rus (HMMR) to Art-Finance LLC. “Hyundai is in the process of making final arrangements with Art-Finance for the details of the deal.”

According to the stock market announcement from Hyundai, the sale is expected to be completed by December 28. The contract includes a repurchase option. Art-Finance is a subsidiary of Russian car dealer Avilon. Hyundai Motor is one of the ten largest automakers in the world, along with its younger sibling Kia.

Production lines at HMMR’s main factory, which opened in 2010, have been stalled since last year due to bottlenecks in component supply. According to reports in South Korean media, Hyundai has recently produced approximately 200,000 cars a year at the facility.

The board’s decision also includes the sale of an unused General Motors factory in Saint Petersburg, according to a company spokesman. This facility, with an annual capacity of 100,000 vehicles, was taken over by the South Koreans three years ago but was never put into operation.

Rumors about the possible sale and withdrawal of Hyundai from Russia as a result of Russia’s war of aggression against Ukraine have been circulating for a long time. In March, Hyundai announced that it was examining various options for production in Russia.

(SDA)

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