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Ukraine War : Mercedes-Benz, Ford Leaves Russia
Mercedes and Ford becomes the latest carmakers to exit the Russian market following the Kremlin’s invasion of Ukraine.
Mercedes announced it will sell its Russian subsidiaries to local investor, Avtodom, for an undisclosed amount.
Mercedes pulling out of Russia move will see it shut its €250 million car plant in Moscow, which opened in 2019.
At the factory in Moscow, up to 25,000 cars are built per year, including the Mercedes-Benz E-Class sedan.
Mercedes and Ford joins Toyota, GM and Rolls-Royce, who have either partially or entirely withdraw from Russia.
Mercedes-Benz has become the latest carmaker to exit the Russian market after announcing on Wednesday that it will sell its Russian subsidiaries to local investor, Avtodom, for an undisclosed amount.
The German carmaker halted exports to Russia and ceased manufacturing of vehicles at its factory in Moscow in March, following the Kremlin’s invasion of Ukraine.
Mercedes pulling out of Russia will see it shut its €250 million car plant in Moscow, which was inaugurated by Vladimir Putin in 2019 and employed 1,000 people. At the factory, up to 25,000 cars are built per year, including the Mercedes-Benz E-Class sedan.
Prior to the war in Ukraine, Mercedes-Benz cars was one of the country’s most popular vehicles. The G-Wagon SUV and the flagship S-Class sedan had always been a favourite among Russia’s wealthy elite.
But the company’s stake in Russian truckmaker Kamaz would not be affected by the intended transaction, according to a Mercedes spokesperson. Its stake in Kamaz is expected to be transferred to Daimler Truck this year as planned.
In a similar move, United States automaker, Ford, on Wednesday, also announced it is also finalising an exit deal to withdraw from the Russian market. Ford said it had sold its 49 per cent stake in a joint venture established in 2011 to produce and distribute its vehicles in Russia.
Mercedes-Benz and Ford joins car makers, including Nissan, Ford, Toyota, Renault, Jaguar Land Rover, General Motors, Aston Martin and Rolls-Royce, who have either partially or entirely withdraw from Russia.
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