Hyundai to take hit of more than $200m on sale of Russian plant
Chinese brands move in to replace big global carmakers pulling out since outbreak of war against Ukraine
19 December 2023 - 14:26
byHyunsu Yim and Heekyong Yang
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Seoul — South Korea’s Hyundai Motor plans to sell its plant in Russia for a nominal 7,000 roubles ($77.67), a company official said on Tuesday.
This makes the group the latest global carmaker to sell Russian assets since the outbreak of the war in Ukraine. Hyundai Motor, in a regulatory filing, said it would take a 287-billion won ($219.19m) loss on selling the plant, where operations were suspended since March 2022.
The company said it was seeking to transfer its assets in the plant in St Petersburg to Russia’s Art-Finance and include a buyback option. It plans to complete the deal by December 28.
A Hyundai Motor official said it would get 10,000 roubles in total for the sale of all its Russian assets.
Hyundai and its affiliate Kia Corp were among the three top-selling brands in Russia before the war. Since then global players have pulled out, with Chinese brands moving in to replace them.
Hyundai Motor follows other big carmakers that have sold their assets in Russia for a nominal fee and included buyback options that could one day allow them to return.
In May, Volkswagen sold its shares in its Russian assets to Art-Finance, which is supported by cardealership Avilon.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hyundai to take hit of more than $200m on sale of Russian plant
Chinese brands move in to replace big global carmakers pulling out since outbreak of war against Ukraine
Seoul — South Korea’s Hyundai Motor plans to sell its plant in Russia for a nominal 7,000 roubles ($77.67), a company official said on Tuesday.
This makes the group the latest global carmaker to sell Russian assets since the outbreak of the war in Ukraine. Hyundai Motor, in a regulatory filing, said it would take a 287-billion won ($219.19m) loss on selling the plant, where operations were suspended since March 2022.
The company said it was seeking to transfer its assets in the plant in St Petersburg to Russia’s Art-Finance and include a buyback option. It plans to complete the deal by December 28.
A Hyundai Motor official said it would get 10,000 roubles in total for the sale of all its Russian assets.
Hyundai and its affiliate Kia Corp were among the three top-selling brands in Russia before the war. Since then global players have pulled out, with Chinese brands moving in to replace them.
Hyundai Motor follows other big carmakers that have sold their assets in Russia for a nominal fee and included buyback options that could one day allow them to return.
In May, Volkswagen sold its shares in its Russian assets to Art-Finance, which is supported by cardealership Avilon.
Reuters
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