Hyundai Sells Russian Factory For Just $111

Hyundai is the latest firm to sell its facility in Russia, with the South Korean manufacturer selling the plant for a mere 10,000 rubles or $111 at current exchange rates. Hyundai has stated that it will take a 287 billion won ($219.19 million) loss and that the deal will be completed by December 28.

The assets were purchased by the Russian firm Art-Finance, and the agreement includes a stipulation that allows Hyundai to repurchase the factory within two years of the sale. The deal was agreed at a board meeting earlier this week and has also been approved by Russia’s government panel on foreign asset transactions.

Following Russia’s invasion of Ukraine in March 2022, operations at Hyundai’s St. Petersburg factory were halted. The site has an annual capacity of more than 200,000 units and has produced models including the Hyundai Solaris, Hyundai Creta, Kia Rio, and Kia Rio X-Line for the Russian market.

Hyundai has been hit hard by dwindling sales across the country. Together with Kia, they were among the top three bestselling brands in Russia before the war. The Korea Times notes that it sold just 6 new vehicles in August this year, a dramatic decrease from the 2,892 units sold in the same month a year earlier. Hyundai and Kia sold a combined 400,000 vehicles in Russia in 2019, and as of 2021, the two brands had a 22.5% share of Russia’s passenger vehicle market.

Over the last 18 months, several other major Western & Japanese auto manufacturers have sold their local operations in Russia for modest amounts. The names include Toyota, Nissan, Volkswagen, Mazda, Renault, and now Hyundai being the latest addition to the list.