SEOUL, Feb 2 (Reuters) - South Korean automaker Hyundai Motor did not exercise a buyback option for its former manufacturing plant in Russia, the company said on Monday, amid the continuing war in
Hyundai Motor Declines Buyback Option for Russian Auto Plant
Hyundai's Manufacturing Decisions Amid Ongoing Conflict
SEOUL, Feb 2 (Reuters) - South Korean automaker Hyundai Motor did not exercise a buyback option for its former manufacturing plant in Russia, the company said on Monday, amid the continuing war in Ukraine.
Background on Hyundai's Russian Operations
Along with its affiliate Kia, Hyundai was once the biggest foreign carmaker in Russia.
Impact of Western Sanctions
Operations at the facility have been suspended since March 2022, a month after Moscow's invasion of its neighbour provoked a backlash of Western sanctions that disrupted supply chains and payments.
Future of Customer Services
In 2024, Hyundai, like many other automakers, sold its plant to a Russian company for a bargain price and agreed to an option to repurchase it within a fixed timeframe in the hope of one day returning. The buyback option expired in January.
"Hyundai Motor continues to provide warranty repairs and customer care services for previously sold vehicles, and remains committed to maintaining these services going forward," Hyundai said in a statement to Reuters.
(Reporting by Hyunjoo Jin; Editing by Himani Sarkar and Sonali Paul)
