Mercedes-Benz Plans To Sell Property in Russia, May Refuse Distribution

Mercedes-Benz is on the verge of selling property in Russia and stop working directly in the country that illegally and without provocation attacked Ukraine on February 24.

Mercedes is considering possible buyers. The list would include Panavto, Avtodom, Avilon and Major dealers, as per Gamingsym.com. Any of the dealers might achieve the right to become a Mercedes distributor if the move should happen.

Undisclosed sources claim that the German premium carmaker is negotiating the sale of a car warehouse and dealership through bidding.

Mercedes owns a plant 40 miles (65 kilometers) from the center of Moscow. But the fate of the Esipovo Industrial Park is yet to be decided. The plant that Daimler Kamaz Rus owns 20% of stopped operating at the beginning of March. That was just approximately one week after the ferocious attack of Russia in Ukraine.

“There are no concrete decisions yet. Please understand that we do not comment on future plans and strategic decisions,” a source told Kommersant.

Sanctions and limitations imposed by the European Union prohibit the company to supply cars that are worth more than 50,000 euros to Russia. Furthermore, cars that roll off assembly lines in the United States will by no means arrive in Russia.

Mercedes-Benz, quick to join sanctions against Russia

At the beginning of March, the company claimed that approximately 709 million euros have gone into operations in relation to the withdrawal from Russia.

The sanctions on the Russian market have been snowballing since the Eastern European giant started the war in Ukraine. Automotive News Europe notes that, despite forecasts, Russia is dodging the worst recession fears as oil eases sanctions pain.

Still, Russia’s economy is dealing with the biggest contraction since at least 2009. The auto industry that the West had built on its territory has been progressively shutting down since February, with no plans of returning whatsoever. Shortages of car parts also affect the local car production.

Katherine T. Burrows

Next Post

Dealerships Don't Like the FTC's Rules to Make Car Buying More Transparent

Wed Jul 13 , 2022
Photograph: Spencer Platt (Getty Illustrations or photos) In June, the Federal Trade Commission proposed a established of regulations prohibiting shady dealership product sales strategies that obfuscate a car’s accurate cost to a likely customer. The targets selection from wrong advertising — like when a site lists a value that in […]