Affected by the current situation, Japanese car brand Toyota announced today that Russia's attack on Ukraine affects parts procurement, and its only factory in St. Petersburg, Russia, will stop production tomorrow and will no longer export cars to Russia. Toyota issued a statement saying that "due to supply chain disruptions, Toyota Motor Russia will stop production at its St. Petersburg plant from March 4 and has stopped importing cars until further notice." The Toyota plant in St. Petersburg built about 80,000 cars last year, mostly producing the Camry and RAV4 for The Russian home market, employing about 2,600 people, a fraction of toyota's 10.5 million cars produced worldwide.
Toyota does not have a factory in Ukraine, but on February 24, after Russian President Vladimir Putin ordered a land-air attack on Ukraine, Toyota stopped its car sales in Ukraine on the same day. Honda, another Japanese car brand, also stopped exporting products to Russia earlier. After the first round of negotiations, the war between Russia and Ukraine shows no signs of easing, Russian troops have moved into more cities, and military conflicts between the two sides are still intensifying. Yesterday, the members of the 11th emergency special session of the United Nations General Assembly voted, and of the 193 States members of the United Nations, 141 votes in favour, 5 votes against and 35 abstentions, adopted the draft resolution on the situation in Ukraine, calling for the withdrawal of Russian troops, which is more a statement of the position of countries in this war and may not be effective in implementation.
The war has entered the 7th day, affected by the situation in Russia and Ukraine, in addition to the closure of Toyota's St. Petersburg plant, major car companies have also successively adjusted production and sales arrangements, including Volvo, Mercedes-Benz, GM, BMW, Jaguar Land Rover Most of the European brands have announced that they have stopped exporting and selling to Russia.
Renault has been deeply involved in the Russian market for many years, and in the early years participated in the restructuring of the Russian eldest son Volga AvtoVAZ, which gave it the top spot in the Russian automotive market, with a market share of 38%. Renault currently has three vehicle equipment plants in Russia, and Renault Russia issued a statement that it will stop production between February 28 and March 5 due to border control and logistics.
Germany's Volkswagen, Audi, Mercedes-Benz and BMW announced this week that they would stop exporting cars to Russia, some of Volkswagen's auto parts and cables came from Ukraine, and supply chain problems caused its two factories in Germany to stop production. Volkswagen is also the second-highest brand in the Russian market, with Volkswagen's plant in Russia producing 118,000 units in 2021 and is still in normal production.
BMW sold the russian luxury brand in 2021, selling a total of 46,800 cars. BMW has been cooperating with Russia for more than 20 years, has just completed a new round of cooperation renewal until 2028 and is investing 350 million euros in the expansion of the factory. At present, BMW's Russian plant is in normal condition, but a BMW spokesperson confirmed today that the Munich plant and the German Dingefen plant confirmed that production will start next week.
GM and Ford had already closed their plants in Ukraine two years earlier, but Ford Motor Russia, through the joint venture Ford-Solles, has three plants in the region that are currently in normal operation.
Great Wall Motors also has a plant in Russia to produce Haval F7, F7x and Haval H9 models, and will sell 39,000 units in 2021. The other two Chinese brands, Geely and Chery, also have sales figures close to Great Wall Motors, and there are no special arrangements for the situation in Russia and Ukraine.
In contrast, toyota's production at the St. Petersburg plant accounts for a smaller share of the entire Russian market, and Toyota said that "the first priority for us to deal with this crisis is to ensure the safety of all team members, retailer employees, and supply chain partners." Toyota said it was closely following the development of the situation in Ukraine and was highly concerned about the safety of the Ukrainian people, and hoped to return to peace safely as soon as possible.
In addition to the impact of the war situation, Toyota suspended production on 28 production lines at 14 plants in Japan from March 1 to 2, caused by a system failure of Kojima Stamping Industries, a supplier of Toyota Motor. Kojima Stamping Industries, a parts company based in Toyota City, Aichi Prefecture, said that during a Cybersecurity Review on February 26, it was found that the company's servers may have been implanted with a ransom-demanding computer "ransomware virus." The next day, Kojima Stamping decided to shut down the network service for anti-virus recovery system processing, resulting in toyota's ordering system not working. Founded in 1950, Kojima Kogyo is one of Toyota Motor's Tier 1 suppliers, with a market share of about 90% in the supply of interior parts and power-related parts for Toyota Motor Vehicles, and also produces parts such as vehicle battery packs. Problems with the systems of major suppliers have led to the complete suspension of all Toyota plants in Japan, which has resumed production yesterday.
The incident, which came hours after Japan pledged to aid Ukraine, cut Toyota's production by about 13,000 units, or about 5 percent of Toyota's monthly production in Japan. Since the second half of 2021, Toyota Motor's plant in Japan has been shut down several times due to the epidemic and chip shortages, and one of the production lines has been suspended for 38 days at the longest. Affected by these reasons, Toyota last month reduced production by nearly 150,000 units, a total of 700,000 vehicles, according to the previous global sales data released by Toyota Motor, in 2021, Toyota motor delivered a total of 10.4955 million vehicles worldwide, an increase of 10.1% year-on-year, winning the global sales championship.
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