The latest Western corporation to leave Russia is Mercedes-Benz: Mercedes is the most recent foreign corporation to leave Russia in the wake of the February invasion of Ukraine.
Early in March, the German company halted producing in and importing from the nation.
However, it has now announced that it would leave the Russian market and sell stock in its subsidiaries to a regional investor.
Ford said Wednesday that an agreement to leave the Russian market had also finalized.
In March, the company said that all of its activities in Russia would suspend. Although it has the option to purchase the shares back within five years “should the global circumstances alter.” It has already sold its 49% ownership in the Sollers-Ford joint venture.
Nissan, a Japanese company, departed Russia earlier this month after Toyota and Renault did the same.
Nissan handed up its company to a state-owned organization for a small amount. Allegedly less than £1, at a loss of $700 million (£600 million).
According to Harald Wilhelm, the company’s chief financial officer, Mercedes’ exit from Russia not anticipate to have a materially negative net impact on the company’s profitability.
The choice made after major Western businesses, including Starbucks, McDonald’s, and Coca-Cola, left Russia earlier this year.
In the early stages of the war, supplies from other automakers. Such as Jaguar Land Rover, General Motors, Aston Martin, and Rolls-Royce, were all stopped.
Mercedes was in line with other businesses when it stopped exports and suspended operations in Russia early this year.
According to Car Dealer Magazine editor-in-chief James Baggott, several other manufacturers left the country quickly.
Before the war, “Russia was a successful market for luxury vehicle companies like Mercedes, with models like the G Wagen off-roader and S Class especially popular with its elite.”
Mercedes may have expected a rapid conclusion to the war. But now that it looks unlikely, the corporation has taken the long-overdue decision to exit the country permanently.
Mercedes-Benz Russia CEO Natalia Koroleva said the transfer’s major aims were to keep Russian consumers and jobs.
The Association of European Businesses (AEB) reported 9,558 Mercedes sales in Russia from January to September, down 72.8% from previous year.