German automaker Mercedes-Benz AG is expected to sell its Russian assets to a local investor, the Russian Ministry of Industry and Trade said yesterday, becoming the latest automaker to exit since Moscow sent troops to Ukraine.
The company’s withdrawal from the Russian market comes after Japan’s Nissan Motor Co this month took a US$687 million loss in handing over its business in Russia to a state-owned entity for 1 euro (US$1), mirroring an earlier move by Renault SA, which sold its majority stake in Russia’s Avtovaz for 1 ruble (US$0.016).
“Mercedes-Benz intends to sell its shares in Russian subsidiaries to a local investor,” Avtodom, it said in a Telegram statement.
Photo: AFP
“The new owner of the Russian divisions of Mercedes-Benz, Avtodom, will be able to attract other companies as partners for joint productions,” it added.
Mercedes-Benz issued a statement confirming its intention to sell.
“The fulfilment of obligations to customers in Russia ... as well as the preservation of jobs for employees of the Russian divisions of the company” were the priority in concluding the deal with Avtodom, Mercedes-Benz-RUS general director Natalya Koroleva said.
“The completion of the transaction is subject to the approval of all relevant authorities,” Mercedes-Benz said in the statement.
Many Western companies left Russia for ethical or logistical reasons since Moscow launched what it calls a “special military operation” in Ukraine on Feb. 24.
Both sides did not provide financial details of the transaction.
The German luxury automaker yesterday also reported that third-quarter net profit doubled from a year earlier to almost 4 billion euros, driven by better sales in China.
Despite continued problems with supply chains, the company saw revenue increase 19 percent to 37.7 billion euros.
The group’s vehicle sales in China rose to 222,600 in the third quarter, up almost 70 percent from a year earlier.
In contrast, the group sold just 146,100 vehicles in Europe, it said.
Additional reporting by Reuters
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