Mercedes-Benz To Close Business In Russia, Sell Assets To Local Investors

The renowned German luxury automaker Mercedes-Benz is on track to become the newest foreign automaker to shut down operations in Russia amid the war with Ukraine. Mercedes said on Wednesday that it would sell its assets to a local investor and depart Russia. After Nissan, Renault, and Toyota, Mercedes is about to become the fourth significant automaker to withdraw from the Russian auto market. The decision might result in the loss of more than 2 billion euros in assets for the German auto giant, including its sole manufacturing facility in Esipovo, close to Moscow.

In March of this year, Mercedes-Benz discontinued production in Russia. About 1,000 people work at its production facility in Esipovo, close to Moscow, which produces E-Class sedans and SUVs. Mercedes-Benz reportedly sold 9,558 vehicles in Russia between January and September of this year. In comparison to Mercedes' performance in Russia the previous year, that represents a decline in sales of more than 70%.

Mercedes-Benz Russia has confirmed that the Avtodom auto dealer group will purchase its stakes in local companies. At the Mercedes factory northwest of Moscow, the purchaser intends to keep on building automobiles. According to Mercedes-Benz Russia CEO Natalia Koroleva, "the key goal in agreeing to the conditions of the transaction was to maximize the fulfilment of responsibilities to consumers from Russia in terms of after-sale service and financial service." as well as protecting the jobs of workers in the company's Russian divisions.