📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Hyundai Motor to exit Russia, selling its plants - media report

Published 04/26/2023, 10:59 AM
Updated 04/26/2023, 08:26 PM
© Reuters. FILE PHOTO: The Hyundai booth displays the company logo at the North American International Auto Show in Detroit, Michigan, U.S. January 16, 2018.  REUTERS/Jonathan Ernst
RENA
-

SEOUL (Reuters) - South Korea's Hyundai Motor Co plans to exit Russia and sell its manufacturing plants there to a Kazakh company, South Korean media reported on Wednesday.

South Korean TV network MBC reported that negotiations to sell Hyundai's factories in Russia are in the final stage, adding that the automaker has been waiting for a final approval from the Russian government.

"It is true that there are ongoing discussions regarding the sale, but nothing has been decided," Hyundai Motor said, according to the TV network.

Hyundai Motor suspended operations at its Russian operation last year. In March, the automaker said it was reviewing "various options" for its Russian operation.

In a statement to Reuters on Thursday, Hyundai Motor said it was reviewing various scenarios for the future of its business in Russia, adding no decision had been made so far.

Many factories in Russia have suspended production and furloughed workers due to shortages of high-tech equipment because of sanctions and an exodus of Western manufacturers since Moscow invaded Ukraine last year.

© Reuters. FILE PHOTO: The Hyundai booth displays the company logo at the North American International Auto Show in Detroit, Michigan, U.S. January 16, 2018.  REUTERS/Jonathan Ernst

Hyundai Motor, together with affiliate Kia Corp, is among the world's top 10 biggest automakers by sales and builds about 200,000 vehicles per year in Russia, about 4% of its global production capacity.

Along with Renault (EPA:RENA), Hyundai and Kia were among top three selling brands in Russia before the war. Now as global players have pulled out, Chinese brands are replacing them in Russia's war economy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.