Mercedes-Benz to quit Russian Market

Automobile Company, Mercedes-Benz has said it would withdraw from the Russian market and sell shares in its industrial and financial services subsidiaries to a local investor.

Mercedes-Benz becomes the latest carmaker to exit Russia since the war with Ukraine.

Japan’s Nissan this month, took a $687 million loss in handing over its business in Russia to a state-owned entity for one euro, mirroring an earlier move by Renault which sold its majority stake in Russia’s Avtovaz for one rouble.

Mercedes-Benz Russia said shares in the local subsidiaries would be sold to car dealer chain Avtodom.

Mercedes Chief Financial Officer Harald Wilhelm, while presenting third-quarter results, said the transaction was not expected to give rise to any further significant effects when it comes to the group’s profitability and financial position beyond those reported in previous quarters.

Reuters/Hauwa Abu