German firm doesn’t expect the sale of regional industrial and financial divisions to significantly impact finances.
Mercedes-Benz has confirmed that it will withdraw from the Russian market, pending the sale of its regional financial and industrial businesses.
It’s currently in talks with Avtodom, a chain of Russian car dealers, and local media has reported that the deal may include a buy-back clause.
Nissan and Renault previously negotiated six-year buy-back clauses in the sale of their Russian assets, which would allow them to re-enter the region following an end to Russia’s war on Ukraine.
The sale isn’t expected to have a significant effect on the Mercedes-Benz Group’s financial positioning, said chief financial officer Harald Wilhelm.
Nor will it affect the upcoming transfer of its 15 per cent stake in Russian truck manufacturer Kamaz to subsidiary Daimler Truck.
Mercedes halted production in and exports to Russia in March in response to the invasion of Ukraine in late February.
Numerous other marques have taken similar action in response to the war.
Nissan was the most recent to announce its exit from Russia, having sold its regional business for €1 (AUD$1.55). Alliance partner Renault is said to have sold its stake in Russian brand Avtovaz for one rouble (AUD$0.025) in May.
Toyota announced the permanent closure of its St Petersburg factory in September, citing there being “no way” to restart production after a six-month suspension.
Volkswagen announced that it would close its Nizhny Novgorod factory in July, while Aston Martin, BMW, Ford, General Motors, Honda and Jaguar Land Rover have all halted sales in the country.
Stellantis – comprising Alfa Romeo, Citroën, Fiat, Jeep, Opel, Peugeot and more – suspended production in Russia in April.