US and Germany to Pressure Toyota on Russian Investment

Toyota faces criticism for continued operations in Russia

The United States and Germany are reportedly preparing to urge Toyota to reconsider its continued business presence in Russia. The move comes amid a broader effort by Western governments to exert pressure on Russia in response to its invasion of Ukraine. Toyota has been criticized for its decision to keep its factories in Russia open, unlike many other Western companies that have suspended or withdrawn their operations in the country.

US and Germany to press Toyota

According to a report in the Financial Times, the US and Germany are planning to make a "diplomatic démarche" to Toyota, which is headquartered in Japan. The approach will reportedly urge Toyota to suspend or withdraw its operations in Russia, citing concerns about the company's exposure to sanctions and the reputational damage it could face. Toyota has a significant presence in Russia, with three factories and about 6,000 employees. The company has been criticized by some for its decision to continue operating in Russia, despite the ongoing war in Ukraine.

Toyota faces pressure from investors

Toyota is also facing pressure from investors to take action in Russia. Last week, the Norwegian sovereign wealth fund, which is one of Toyota's largest shareholders, said it had voted against the company's management at its annual meeting due to its continued operations in Russia. The fund said it believed Toyota's presence in Russia was "unacceptable" given the humanitarian crisis caused by the war.

Toyota says it is monitoring the situation

Toyota has said that it is monitoring the situation in Russia and is committed to complying with all applicable laws and regulations. However, the company has not yet announced any plans to suspend or withdraw its operations in the country. It remains to be seen how Toyota will respond to the pressure from Western governments and investors. Some analysts believe that the company may eventually be forced to take action, while others believe that it will try to ride out the storm and hope that the situation in Russia improves.