Mercedes is the most recent Western corporation to withdraw from Russia, following Ukraine’s incursion in February.
Early in March, the German company ceased manufacturing and exporting to the country.
However, the company has recently announced that it will exit from the Russian market and sell its subsidiary stock to a local investor.
Nissan departed Russia earlier this month, following in the footsteps of Toyota and Renault.
Nissan handed over its business to a state-owned firm for a small amount, reportedly less than £1, incurring a loss of $700 million (£600 million).
Mercedes’ chief financial officer, Harald Wilhelm, stated that the company’s exit from Russia was not anticipated to have a significant impact on its profits.
The decision comes after many Western corporations, including Starbucks, McDonald’s, and Coca-Cola, left Russia earlier in the year.
In the early months of the conflict, several automakers, including Jaguar Land Rover, General Motors, Aston Martin, and Rolls-Royce, ceased deliveries to the country.
James Baggott, editor-in-chief of the industry website Car Dealer Magazine, stated that Mercedes was in line with other corporations when it halted exports and suspended operations in Russia earlier this year, but that many other automakers rapidly withdrew from the nation.
He stated that it was strange that Mercedes did not follow.
Before the war, Russia was a lucrative market for luxury automobile makers such as Mercedes, with models such as the G Wagen off-roader and S Class being popular among the country’s elite.
“Perhaps Mercedes hoped for a quick end to the war, but now that it seems doubtful, the company has made the long-overdue decision to leave the nation permanently.”
Natalia Koroleva, the chief executive officer of Mercedes-Benz in Russia, stated in a statement that the primary objectives of the relocation were to honor commitments to Russian customers and maintain employment in Russia.
The Association of European Businesses (AEB) said that 9,558 Mercedes vehicles were sold in Russia between January and September, a 72.8% decrease compared to the same period last year.
