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Mercedes-Benz is the latest Western automaker to exit the Russian market, selling shares in its industrial and financial services subsidiaries to local investors, the Avtodom dealer network, but keeping a 15% stake in Kamaz trucks.
The German car manufacturer stopped production in and exporting to Russia at the beginning of March, days after war broke out in the Ukraine.
The Wall Street Journal reported that the company has taken a $1.1 billion loss in its Russian venture, despite chief financial officer, Harald Wilhelm saying the loss "wouldn't have a significant impact" on profits during the third quarter earnings presentation.
"The final conclusion of the transaction is subject to approval by the market regulatory authority, as well as to the contractually agreed terms," said Wilhelm.
Ford recently sold a 49 percent stake in its 2011 venture to manufacture and distribute vehicles in Russia.
The company said Ford shares will be transferred to the joint venture at a nominal value but with the caveat that Ford could reacquire them within five years "should the global situation change."
Mercedes and Ford join a long list of automotive companies that have partially or fully withdrawn from Russia, including Toyota, Renault, Jaguar Land Rover, Rolls-Royce, Aston Martin and fast-food companies such as McDonald's and Starbucks.
Popular with Russia's sizeable middle class, Mercedes sold 9,558 Mercedes vehicles from January to September, down 72.8% from a year earlier, according to the Association of European Businesses.
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Copyright © 2023 CGTN. 京ICP备16065310号
Disinformation report hotline: 010-85061466