Mercedes to exit Russian market after manufacturing suspension
Mercedes is set to exit the Russian market once and for all after it suspended manufacturing in March as a result of Moscow’s invasion of Ukraine.
The car maker said today that, even though it will sell its shares to Russian car dealership Avtodom, the transaction will not impact the group’s financial position or its profitability.
“Final completion of the transaction is subject to the authority’s approval and the implementation of contractually agreed conditions,” chief finance officer Harald Wilhelm told journalists while presenting the group’s third quarter results.
A company spokesperson told Reuters the group’s 15 per cent stake in Moscow truck manufacturer Kamaz will not be affected by the sale.
Mercedes has raised its full-year profit forecast to at least 15 per cent following due to a strong demand for luxury cars. The car manufacturer previously expected a growth between 5 and 15 per cent.
The German marque is the latest car maker to exit the Russian market due to the war.
Just last month Nissan announced the sale of its Russian business for €1, posting a $687m loss as a result, while Renault sold its stake in Russian car maker Lada for one rouble in May.