Toyota and Honda join growing corporate retreat from Russia

[SYDNEY] Japanese carmakers joined the global pullback from Russia, following companies including Ford Motor and Exxon Mobil that are choosing not to do business in the country after its invasion of Ukraine.

Toyota Motor said it's halting production at its plant in St Petersburg from Mar 4 and will cease vehicle shipments into Russia. Honda Motor will stop exports of cars and motorcycles to the nation. Mazda Motor is also suspending shipments of parts to a plant in Russia, the Nikkei reported.

The sweeping actions by Japan's largest carmakers add more weight to what's shaping up as an international boycott on sales of everything from phones and clothes to cars and oil. Apple and Nike both announced plans Tuesday (Mar 1) to halt sales in Russia, joining Exxon's exit. United Airlines Holdings will stop flying over the country for its daily flights to India.

Global companies are withdrawing from the Russian market prompted by concerns over human rights to logistical snarls and as they weigh the impact of international sanctions.

"Toyota is watching the ongoing developments in Ukraine with great concern for the safety of people of Ukraine and hopes for a safe return to peace as soon as possible," the Japanese company said in a statement. "We are also monitoring global developments and will make necessary decisions as required."

Toyota, which makes the Rav4 and Camry models at its Russian factory for the local market, said production and shipment halts will continue until further notice. It cited supply-chain disruptions.

Honda pointed to challenges around distribution and finances and said it will resume shipments once the situation returns to normal. While Honda doesn't have a factory in Russia, it exports about 1,500 SUVs annually to the country from plants in the US, according to NHK. BLOOMBERG