The auto manufacturer’s assets will be transferred to a local investor
© Sputnik / Maria Devakhina
German auto giant Mercedes-Benz announced on Wednesday that it will leave the Russian market and sell its stakes in its industrial and financial services subsidiaries to a local entity.
According to the company, its shares in the local subsidiaries will be sold to car-dealer chain Avtodom. The buyer stated it would select a technology partner to continue operating the production facilities at the Esipovo industrial park northwest of Moscow, where Mercedes-Benz has a plant. Avtodom will be able to carry out maintenance of Mercedes-Benz vehicles sold in Russia.
“The main priorities in agreeing the terms of the transaction were to maximize the fulfilment of obligations to clients from Russia both in terms of after-sales services and financial services, as well as preserving the jobs of employees at the Russian divisions of the company,” CEO of Mercedes-Benz Rus Natalia Koroleva said.
The company’s 15% stake in Russian truck maker Kamaz will not be affected by the intended transaction and is set to be transferred to Daimler Truck this year as planned, the company’s spokesperson said.
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Mercedes suspended manufacturing in Russia in early March. According to the Association of European Businesses (AEB), just over 9,550 Mercedes vehicles were sold in Russia from January to September, down 72.8% from a year earlier.
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