Hyundai Motor Company is considering various options for business in Russia, including the sale of the plant in St. Petersburg. This was reported on Tuesday by Tona Ilbo, citing its sources.
According to the publication, recently the company's management was presented with a report on the situation in Russia and business prospects. The report, among other things, analyzed the expected consequences of the decision to sell the plant. The sale of the production site is one of the main scenarios.
As the publication points out, the inability to conduct "normal" financial activities prompted management to consider selling the plant. Due to sanctions against the Russian Federation, the ability to transfer money between the central office and the Russian branch is limited. In August and September, the Russian division of Hyundai Motor was unable to sell a single car. At the same time, the costs of maintaining the plant, such as salaries, taxes, electricity bills, are saved.
On the other hand, it may be “difficult” for the company to leave the Russian market because of the funds already invested, the newspaper points out. Subsidiaries of Hyundai Motor appeared on the Russian market, preparations were made for the future production of electric vehicles. Since it is not known whether the situation in Russia can change dramatically, the company may take a wait-and-see attitude, the paper said.
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