Mercedes has pulled out of the Russian market following the ongoing war with Ukraine.
The German-based firm in March stopped exports and manufacturing in Russia, and the latest update is their withdrawal from the country’s market, followed by sale of its shares in its subsidiaries to a local investor.
Many Western companies pulled out of Russia earlier in the year, including Starbucks, McDonald’s, and Coca-Cola.
Japan’s Nissan left Russia earlier this month, following the same move from Toyota and Renault.
Nissan took a $700m (£600m) loss in handing over its business to a state-owned entity for a nominal fee, reportedly less than £1.
Jaguar Land Rover, General Motors, Aston Martin and Rolls-Royce also halted their deliveries to Russia in the early months of the war.
The Chief Financial Officer of Mercedes, Harald Wilhelm, however said its move to withdraw from the Russian market was not expected to have any serious effect on the company’s profits.
The Mercedes Chief executive in Russia, Natalia Koroleva, in a statement stated that their main priority in the move was to preserve jobs in Russia and fulfill their customer’s wishes as Mercedes sales in the country was down 72.8% from January through to September as compared to last year.
“Russia was a lucrative market for luxury car manufacturers like Mercedes prior to the war, with cars like its G Wagon off-roader and S Class very popular with its elite,”
“Perhaps Mercedes was hoping for a swift resolution to the war, and now that looks unlikely, the firm has finally taken the long-overdue decision to quit the country for good,” editor-in-chief of industry website Car Dealer Magazine, James Baggott told BBC.
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