Hyundai Motor Exits Russia for $219 Million Loss! Ukraine War Pushes Automaker Off the Road

Hyundai Motor breaks ranks, selling idle Russian facility for $77.67 amidst Ukraine conflict. Faces $219.19M loss, opts for buyback option. Industry shifts as global automakers exit.

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Hyundai Motor of South Korea wants to sell its Russian facility for a minimum 7,000 roubles ($77.67), a company spokesman said today, making it the first major carmaker to sell Russian assets since Ukraine’s conflict began.

Hyundai Motor said in a regulatory filing that selling the facility, which has been idle since March 2022, will result in a 287 billion won ($219.19m) loss.

The firm stated that it intends to transfer its assets at the St Petersburg factory to Russia’s Art-Finance and include a buyback option, and that it expects to complete the transaction by December 28.

According to a Hyundai Motor spokesman, the company would earn a total of 10,000 roubles for the sale of all of its Russian properties.

Before the conflict, Hyundai and its subsidiary Kia were among the top three selling brands in Russia. Since then, global players have withdrawn, with Chinese companies stepping in to take their place.

Hyundai Motor is following in the footsteps of other global automakers, which have sold their assets in Russia for a minimal charge and included buyback options that might allow them to return in the future.

Volkswagen sold its stake in its Russian businesses to Art-Finance, which is backed by the autodealer firm Avilon, in May.

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