Sollers in talks to buy Mazda from Russian joint venture

Sollers in talks to buy Mazda from Russian joint venture

MOSCOW (Reuters) – Russian carmaker Solers is in talks with Mazda Motor Co (OTC: Corp) about buying the Japanese company’s stake in their Russian joint venture, Solers said on Monday, as Mazda prepares to end its operations in Russia.

Mazda, which sold 30,000 cars in Russia last year, said in March that exports of spare parts to the project’s plant in Vladivostok would be halted and production would stop when stocks run out. On Saturday, the newspaper first reported the talks with Sollers.

Solers said it was in talks with Mazda about stopping production of cars in Vladivostok and buying Mazda’s stake in the project.

“At the same time, Sollers Auto has already developed a plan to re-launch the plant to produce other car brands, and negotiations on this issue are currently being finalized,” Sollers said in a statement.

It did not specify a time frame for stopping production at the Vladivostok plant.

A Mazda spokesperson said the company was discussing ending production of cars in Vladivostok, without elaborating.

Japan’s Mazda competitor Toyota Motor Co. (NYSE:) said Friday it has decided to end production of cars in Russia due to disruptions in supplies of key materials and parts.

Several factories in Russia have halted production and shifted workers due to a shortage of high-tech equipment due to sanctions and an exodus of Western manufacturers since Moscow sent armed forces to Ukraine on February 24.

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