Mercedes-Benz has been facing several financial and operational challenges in Russia due to the continued conflict between Russia & Ukraine. The escalating unrest in Russia is hampering the company’s production process, logistics & procurement. Additionally, Mercedes-Benz is also dealing with outstanding trade receivables due to limitations on cross-border payments and the Russian ruble’s limited convertibility. According to data from The Association of European Businesses (AEB), Mercedes sold 9,558 vehicles in Russia from January to September, a 72.8% decline from the previous year.
Mercedes-Benz to Sell its Shares to Russian Car Dealer Avtodom
Mercedes-Benz is planning to sell its share to the Russian car dealer Avtodom. The agreement between the two companies is anticipated to include a buy-back clause. Additionally, the agreement includes commitment towards job stability for its Russian employees as well as continuous commitment to after-sale and financial services for Russian clients.
Russian Automotive Market to Face Biggest Setback with Automotive Manufacturers Leaving the Country
Mercedes-Benz’s exit from Russia is expected to significantly hinder the growth of the Russian automotive market. The withdrawal of Nissan, Renault, and Toyota, Mercedes-Bens has already caused a significant setback for the Russian automotive industry, with Ford planning to exit the country soon.
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