Mercedes-Benz leaves Russia and sells assets
DANA HORDIICHUK — WEDNESDAY, 26 OCTOBER 2022, 11:11
German car manufacturer Mercedes-Benz is leaving the Russian market; the company is selling its factories in the Moscow suburbs and all its property to a local investor.
Source: Russian media outlets, citing the company’s official statement [statement can be heard in the "Rebroadcast call for analysts and investors" video at 17:29 - ed.] and sources on the Russian market.
Quote: "Mercedes-Benz intends to leave the Russian market and sell its shares in local subsidiaries [JSC Mercedes-Benz RUS, Mercedes-Benz Manufacturing Rus Ltd., Mercedes-Benz Financial Services Rus Ltd., Mercedes-Benz Bank Rus Ltd., OOO Mercedes-Benz Capital Rus - ed.] to a local investor," Harald Wilhelm, member of the Board of Management of Mercedes-Benz AG, said in a statement.
Details: The Avtodom Group, which specialises in selling and servicing premium and luxury cars, will take over the assets of the German company.
Mercedes is already the third automotive group in the passenger car segment that is leaving the Russian Federation. Prior to that, Renault and Nissan sold their assets and left the Russian market; additionally, the Toyota factory was also closed its operations in this country.
Western sanctions forbid supplying cars that cost more than €50,000 and all US-made cars to Russia. Furthermore, sanctions make it impossible to supply component parts to Russia. Mercedes estimated its assets in the Russian Federation to be €2,000,000,000 as at the end of 2021. A Mercedes-Benz factory with the capacity to produce 25,000 cars per year was opened in the city of Yesipovo (near Moscow) in 2019.
In the first nine months of 2022, annual sales of Mercedes-Benz cars in Russia dropped by 73%, i.e. to 9,100 cars.
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