International, Transport Industry News

Isuzu exits Russian market amid ongoing production stalls

The Japanese manufacturer has decided to cut its losses and turn its back on the Eastern European giant, for now.

Isuzu Motors, the renowned global heavy vehicle brand, has recently made an announcement regarding its withdrawal from the Russian market due to ongoing international conflict that continues to disrupt production.

The company cites the war in Ukraine as the primary reason for the inability to resume production. Consequently, Isuzu has decided to sell its stake in the business to Sollers, a Russian vehicle company.

According to a source from Japanese non-profit news agency, Kyodo News, Sollers has taken over Isuzu’s Russian factory, along with its workforce of 200 employees.

Isuzu initially halted production in Russia back in March 2022, when the conflict caused a disruption in the supply of parts. This setback resulted in a significant financial loss of approximately $12 million for the company.

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In November of the previous year, Kyodo News reported that Isuzu had contemplated exiting the Russian market, despite having commenced Russian vehicle production as early as 2008.

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