Hyundai is about to sell its production facilities in Russia for a symbolic price. The board has approved plans to sell St. Petersburg-based Hyundai Motor Manufacturing Rus (HMMR) to Art-Finance LLC, South Korea’s industry leader said on Tuesday. “Hyundai is in the process of making final arrangements with Art-Finance for the details of the deal.”
The purchase price was 10,000 rubles (around 100 euros), said a company spokeswoman in Seoul. According to a stock market announcement from Hyundai, the sale is expected to be completed by December 28th. The agreement therefore contains a buyback option. Art-Finance is a subsidiary of the Russian car dealer Avilon. Hyundai Motor, along with its smaller sister Kia, is one of the world’s ten largest car manufacturers. The production lines at HMMR’s main plant, which opened in 2010, have been at a standstill since last year due to supply bottlenecks for components. According to South Korean media reports, Hyundai recently manufactured around 200,000 cars a year at the plant. According to the company spokeswoman, the board’s decision also includes the sale of a disused General Motors factory in Saint Petersburg. This plant, with an annual capacity of 100,000 cars, was taken over by the South Koreans three years ago but never put into operation. Rumors about Hyundai’s possible sale and withdrawal from Russia as a result of Russia’s war of aggression against Ukraine have been circulating for a long time. In March, Hyundai said it was examining various options for production in Russia. A side note: Hyundai is doing pretty well for 10,000 rubles – Renault sold its shares in Avtovaz for 1 ruble last year.
source site-13