Mercedes-Benz is exiting the Russian market and selling its assets in the country to the Avtodom car dealership chain. The automaker made the announcement during the presentation of its third quarter financial results.
“The main priorities in the agreement on the terms of the transaction were to maximize the fulfillment of obligations to Russian customers both in terms of after-sales services and financial services, as well as to preserve the jobs of employees of the divisions. companies,” Natalia Koroleva, CEO of Mercedes-Benz Russia, said in a statement, according to Automotive News.
In March, Mercedes stopped exporting vehicles to Russia and also halted local production there. The company has 1.8 billion euros in assets in the country and 1.0 billion euros in liabilities, the third quarter financial report said.
Mercedes will retain its 15% stake in Russian truckmaker Kamaz, according to Automotive News.
Since Russia’s invasion of Ukraine, many automakers have completely abandoned the market or at least halted sales there. Nissan, for example, left the county and sold its assets to NAMI, the Central Research and Development Automobile and Engine Institute. Renault did the same, including transferring shares of AvtoVAZ to NAMI.
Similarly, Toyota suspended production at its St. Petersburg plant in March and announced the complete closure of the plant in September. However, the automaker maintains its dealer network at least for servicing vehicles already on the road.
High-end automakers also responded to the invasion. Lamborghini suspended business operations in Russia and donated 1 million euros to UN refugee aid. Ferrari suspended vehicle production for the Russian market and pledged 1 million euros to international humanitarian projects.
Mercedes-Benz is exiting the Russian market and selling its assets in the country to the Avtodom car dealership chain. The automaker made the announcement during the presentation of its third quarter financial results.
“The main priorities in the agreement on the terms of the transaction were to maximize the fulfillment of obligations to Russian customers both in terms of after-sales services and financial services, as well as to preserve the jobs of employees of the divisions. companies,” Natalia Koroleva, CEO of Mercedes-Benz Russia, said in a statement, according to Automotive News.
In March, Mercedes stopped exporting vehicles to Russia and also halted local production there. The company has 1.8 billion euros in assets in the country and 1.0 billion euros in liabilities, the third quarter financial report said.
Mercedes will retain its 15% stake in Russian truckmaker Kamaz, according to Automotive News.
Since Russia’s invasion of Ukraine, many automakers have completely abandoned the market or at least halted sales there. Nissan, for example, left the county and sold its assets to NAMI, the Central Research and Development Automobile and Engine Institute. Renault did the same, including transferring shares of AvtoVAZ to NAMI.
Similarly, Toyota suspended production at its St. Petersburg plant in March and announced the complete closure of the plant in September. However, the automaker maintains its dealer network at least for servicing vehicles already on the road.
High-end automakers also responded to the invasion. Lamborghini suspended business operations in Russia and donated 1 million euros to UN refugee aid. Ferrari suspended vehicle production for the Russian market and pledged 1 million euros to international humanitarian projects.
