MercedezBenz Mercedes Benz quits Russian market, mirrors move of western firms
Moscow/IBNS: After major western companies such as Nissan and Renault exited the Russian market, Mercedes Benz announced its decision to pull out of Russia and sell shares in its subsidiaries to a local investor.
Earlier this month, Japanese carmaker Nissan handed over its business in Kremlin to a state-owned entity for one-Euro, following suit to Reanult, who sold off its majority stake in Russia's Avtovaz for one rouble, as per media reports.
American car manufacturer Ford on Wednesday confirmed a deal finalised to leave the Russian market.
Toyota has already left the Kremlin market.
Mercedes Chief Financial Officer Harald Wilhelm, while presenting third-quarter results, said the transaction was not expected to give rise to any further significant effects when it comes to the group's profitability and financial position beyond those reported in previous quarters, as per a Reuters report.
The German luxury brand's decision received impetus after major western organisations like CocoCola, McDonalds, and Starbucks walked out of the Russian market.
Chief Executive of Mercedes-Benz in Russia Natalia Koroleva said that the main priorities for the German company were to meet obligations to Russian clients in terms of post sales and financial services, and preserve jobs in Russia, as per media reports.
The Association of European Businesses (AEB) said 9,558 Mercedes vehicles were sold in Russia from Jan.to Sept. down 72.8 percent from the previous year.
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