The St. Petersburg Nissan Plant Reaches A Turning Point Amid Workforce Reductions And Strategic Rebranding
In the wake of shifting ownership and strategic realignment in Russia’s automotive sector, the former Nissan facility in St. Petersburg, now known as Avtozavod St. Petersburg, faced a significant workforce reduction. By the end of May, the plant had informed the regional Employment Center that 317 employees were placed on idle time through May 31, 2024. This figure represents less than a third of the factory’s total staff, signaling a substantial contraction in manufacturing activity and a broader reshaping of operations to align with the company’s evolving corporate structure. (Source: TASS, citing the press service of the Employment Center)
The factory’s decline has historical context. When the St. Petersburg Automobile Plant first opened its doors in June 2009, it became a hub for several popular models including the X-Trail, Murano, Qashqai, and Terrano. The facility was designed with an ambitious production capacity of about 100,000 vehicles per year, reflecting a robust forward-looking plan for growth in the Russian market. However, in the autumn of 2022 the asset changed hands, signaling the beginning of a new chapter for the site. (Source: company records and industry reports)
In January 2024, the enterprise introduced the first batch of vehicles under the Xcite brand, marking a shift toward new branding and product positioning. The site has since undergone a series of corporate transitions, including a rename to Lada St. Petersburg and later the formation of Avtozavod St. Petersburg LLC. These changes indicate a broader strategy to integrate the plant into a different corporate lineage while leveraging legacy manufacturing capabilities. (Source: plant announcements and market analyses)
Financial disclosures for 2023 reveal a challenging year for the plant, with a net loss totaling 13.7 billion rubles. This figure represents a deterioration from 2022, when the loss stood at 6 billion rubles. The company’s annual revenue declined sharply, dropping by nearly 90 percent to 3.7 billion rubles in 2023 as market conditions and ownership changes reverberated through operations. These numbers underscore the macroeconomic and corporate factors impacting production, supply chains, and sales at the site. (Source: enterprise financial statements)
Past reporting also noted AvtoVAZ’s trial endeavors, including the production of white Lada Aura sedans with black interiors intended for official use. Such lines illustrate the plant’s continued involvement in specialized production activities even as broader commercial demand and manufacturing stability faced headwinds. (Source: corporate briefings and industry summaries)