11:36 am, April 27, 2023
Mercedes has officially withdrawn from Russia but bosses have left the door open to a possible return in the future.
The German brand yesterday sold all its assets in the country to Russian dealer group Avtodom but the deal includes a buy-back option of shares.
Among the assets sold by Mercedes is a plant in Moscow which makes around 20,000 vehicles every year.
Terms were initially agreed last year but have only now been sanctioned as all deals for ‘unfriendly’ Western companies to leave Russia require government approval.
Bosses at Mercedes have not confirmed how long the buy-back option will remain in place, but Reuters reports the deal will be available for the next six years.
It comes a year after Ukrainian president Volodymyr Zelensky, accused carmakers foreign firms in Russia of ‘financing Putin’s war machine’.
The comments lead to Renault’s decision to exit the country in March of last year.
Prior to that Jaguar Land Rover had already suspended car deliveries to Russia.
You can read more about how the motor industry initially reacted to the Russian invasion below:
- Inchcape to drop Russian operations completely in wake of Ukraine invasion
- Toyota and Nissan boost humanitarian relief efforts in Ukraine with multi-million donations
- Tesla will pay Ukrainian staff for three months if they are called back to fight for their country
- Mobile mechanics prepare to drive coach of paramedics and nurses to Ukraine
- Car dealers face further new car delays as manufacturers announce factory closures
- Stellantis donates one million euros to help Ukrainian refugees and civilians fleeing from Russian invasion
- Car factories stall as war in Ukraine causes parts supply issues across region
- Jaguar Land Rover suspends car deliveries to Russia
- Volkswagen halts production at German plants due to difficulties getting parts from Ukrainian supplier
- Ukrainian wiring harnesses overtake semiconductors as Volkswagen’s biggest supply chain headache
- Mercedes-Benz could lose £2bn in assets as Russia looks to clamp down on ‘unfriendly states’
- More bad news for new car market as experts predict war in Ukraine is set to slash production even further
- ‘Heroic’ classic car salesman spending £5,000 a day housing fleeing Ukrainian families
