Mercedes-Benz, the latest carmaker to leave the country, announced on Wednesday that it would leave the Russian market and sell shares in its industrial and financial services companies to a local investor.
Nissan of Japan suffered a $687 million loss this month when it sold its operations in Russia to a state-owned company for one euro, following Renault’s earlier decision to sell its majority stake in Russia’s Avtovaz for one rouble.
Shares in the regional companies would be sold to the Avtodom chain of auto dealers, according to Mercedes-Benz Russia.
In announcing the company’s third-quarter results, Mercedes Chief Financial Officer Harald Wilhelm stated that the transaction was not anticipated to have any additional material implications on the group’s profitability and financial situation beyond those already noted in prior quarters.
“Final completion of the transaction is subject to the authority’s approval and the implementation of contractually agreed conditions,” he added.
Six-year buyback clauses were inserted by both Nissan and Renault. The Mercedes agreement may have a similar clause, according to a source quoted by the Russian newspaper Vedomosti.
According to a Mercedes spokeswoman, the anticipated deal would not have any impact on the company’s 15% ownership position in Russian truck manufacturer Kamaz, which should be transferred to Daimler Truck this year as scheduled.
In order to maintain operation of the production facilities at the Esipovo industrial complex northwest of Moscow, which houses a Mercedes-Benz production facility, Avtodom stated it would choose a technological partner.
“The main priorities in agreeing the terms of the transaction were to maximise the fulfilment of obligations to clients from Russia both in terms of after-sales services and financial services, as well as preserving jobs of employees at the Russian divisions of the company,” Natalia Koroleva, CEO of Mercedes-Benz Rus, said in a statement.
Mercedes stopped producing in Russia at the beginning of March.
9,558 Mercedes vehicles were sold in Russia from January to September, according to the Association of European Businesses (AEB), a decrease of 72.8% from the same period last year.
