Mercedes-Benz and Ford Motor Company to shut down business in Russia.
The latest foreign businesses to leave Russia are Mercedes-Benz and Ford Motor Company, more than eight months after Russian forces invaded Ukraine.
In an email to CBS MoneyWatch on Wednesday, a spokeswoman stated, “We confirm that Mercedes-Benz intends to withdraw from the Russian market and to sell its shares in its subsidiaries to a local investor.”
Mercedes-Benz previously stopped exporting vans and vehicles to Russia at the beginning of the year, as well as stopping local production there.
Chief Financial Officer of the German manufacturer Harald Wilhelm hinted on Wednesday at the difficult business environment brought on by the conflict.
Mercedes-Benz and Ford Motor Company decided to shut down business in Russia.
In a statement about the company’s third-quarter earnings, he said, “The macroeconomic and geopolitical conditions continue to be characterised by an exceptional degree of uncertainty, including the war in Ukraine and its effects on supply chains and on the availability and development of prices for energy and raw materials.”
Additional consequences brought on by the fast-deteriorating situation in Russia and Ukraine are unknown at this time and have not yet been accounted for in our key data.
Ford announced on Wednesday that it has sold its 49% stake in the Sollers Ford Joint Venture, concluding its exit from Russia. Ford has the right to repurchase its shares within five years “should the global situation change,” the company said.
Ford’s shares will be transferred to the joint venture for a nominal sum.
The sale follows Ford’s March decision to halt all activities in Russia, including production, part sourcing, and engineering support.
Along with other automakers, Nissan of Japan left Russia earlier this month, following Toyota’s lead in September.
Numerous other American companies, including McDonald’s, Nike, and Starbucks, have made intentions to stop doing business in Russia this year.
