Finally, Mercedes-Benz will Stop Selling Cars in Russia

The oldest automaker in the world will finally and belatedly leave the Russian auto market after locating a local buyer for its subsidiary there. For an undisclosed fee, the German premium automaker will sell Avtodom, a Russia auto dealership chain, and its industrial and financial services companies. Although the timing of the buyback option is unknown, it is rumored to be included in the agreement. After the invasion of the neighboring Ukrainian territory in March, it stopped operating its production facility close to Moscow. The admission was made by Mercedes-Chief Benz's Financial Officer, Harald Wilhelm, during the presentation of the company's third-quarter financial results. Wilhelm insisted there would be no further effects on profitability following the disclosure of Russian losses in the second and third quarters. The authority's consent and the implementation of the criteria outlined in the contract are both necessary for the transaction's eventual completion, according to Wilhelm. Additionally, Mercedes-Benz owns a 15% share in the truck manufacturer Kamaz, which it will transfer to DaimlerTruck this year. There is no doubt in my mind that Kamaz is still producing. According to a statement from Mercedez-Benz Rus CEO Natalia Koroleva, "the main priorities in agreeing the terms of the transaction were to maximize the fulfillment of obligations to clients from Russia both in terms of after-sales services and financial services, as well as to preserve jobs of employees at the Russian divisions of the company. According to the Association of European Business, Mercedes-Benz nonetheless sold 9558 automobiles in Russia from January to September despite the conflict. Mercedes-Benz has now officially left the Russian market, joining a long list of other automakers who did so before Russia's conflict with Ukraine. The latest car company to leave the country was Nissan, which sold its Russian operations to a state-owned firm for one euro while Nissan's largest shareholder, Renault, sold its part in AvtoVAZ. Both businesses continue to have six-year buyback options. When Nissan sells its Russian business for pennies on the dollar, it loses $687 million. Volkswagen is actively looking for a local company to take over its Kaluga factory despite though the production facility hasn't produced a car since the start of the conflict, Toyota has stated it would discontinue production in Russia, Mazda is looking for a way out, and Mazda is looking for a way out.