St. Petersburg car plants reorganize as workforce downsizes and brands adjust production

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Following the restructuring, the workforce in St. Petersburg’s automobile plants could be reduced from about 12,000 employees to roughly 3,000 or 4,000. This is based on statements referenced by Dmitry Cherneiko, who chairs the Committee on Labor and Employment for the St. Petersburg population, in a briefing that circulated through national news wires.

According to Cherneiko, the automotive sector in St. Petersburg previously employed as many as 12,000 people when including suppliers. After all the ongoing adjustments are carried out, he anticipates a cut to about 3,000 to 4,000 workers by the time the full process reaches its conclusion. He described this projection as an expert assessment, noting the volatility of the period and the need for careful planning as the industry reorganizes.

St. Petersburg hosts several automobile factories linked to major brands, with Nissan, Toyota, and Hyundai among the producers in the region. The Hyundai plant has not produced vehicles since March 2022. Toyota halted its assembly operations completely in September 2022. The former Nissan facility is expected to be redirected toward the production line of AvtoVAZ models, signaling a shift in the site’s role within the regional automotive ecosystem.

In another development concerning the broader Russian automotive landscape, a former Volkswagen chief executive indicated in a separate interview that a decision regarding the Kaluga plant’s future would be announced within weeks. Historically, the Kaluga plant produced models such as the Volkswagen Tiguan and Polo and the Skoda Rapid, but production there has been suspended since March 2022. This circumstance underscores ongoing adjustments across car manufacturing sites in the region as companies reassess capacity and strategic alignment in light of evolving market conditions and regulatory considerations, as reported in industry briefings and official statements from the period of transition. Citation: official industry briefing and corporate communications.

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