Mercedes Benz Pulls Out of Russian Market
(DailyVantage.com) – Since Russia invaded Ukraine in February, many businesses have pulled out of the country in protest of President Vladimir Putin’s actions. Companies such as McDonald’s, Starbucks, Amazon, and PayPal have all packed up and left or stopped their services. Now, another company has had enough and made its feelings about the war abundantly clear.
Back in March, German automaker Mercedes-Benz ceased manufacturing and exporting to Russia in protest of the Kremlin’s actions. This week, it took more permanent action. During a presentation of its third-quarter results, Chief Financial Officer Harald Wilhelm said the company had found a buyer for its subsidiaries. Mercedes will sell all the financial and industrial services assets to Avtodom with a buyback option.
Mercedes-Benz becomes latest Western company to pull out of Russia https://t.co/frUPJJgMvH
— BBC News (World) (@BBCWorld) October 26, 2022
According to Wilhelm, the sale and subsequent withdrawal of the automaker from the Russian market will not affect profitability. Before the withdrawal is complete, it must gain “the authority’s approval” and fulfill all “contractually agreed conditions.”
Several other automakers have also pulled out of Russia, including Nissan, which took a $700 million loss in the process. Ford is next in line, having finalized a deal that saw the sale of its stake in Sollers Ford. Like Mercedes, Ford has a buyback option “should the global situation change” within the next five years.
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