Mercedes-Benz And Ford Pull Out Of Russia

Industry News / Comments

Two more carmakers have decided to exit the Motherland.

As Russia's economy continues to crumble, its leader Vladimir Putin continues to push forward with an aimless war in Ukraine, and the mass loss of human life isn't the only victim here. Wealthy Russians are starting to miss their favorite coffee brands and can no longer gorge themselves on McDonald's. For Russian gearheads, the war and ensuing sanctions have been one of the greatest disasters of all: most major car manufacturers have pulled out of Russia. Japanese brands were some of the first to pull out, and now major German and American brands are starting to do the same. In a massive blow for Russian politicians, mobsters, and high-level drug dealers, Mercedes-Benz has pulled out of the country. That means no more pitch-black Mercedes-Benz S-Class and G-Class vehicles. Ford has also pulled out, giving Russian consumer morale another hit.

2019-2022 Mercedes-AMG G63 Front View Driving Mercedes-Benz

Russia has already resorted to firing up its own antiquated manufacturing plants, and the cars that have been rolling off the production line have been the stuff of nightmares. Now that most major manufacturers are pulling out, things are only set to become worse, and the exit of Mercedes-Benz and Ford has to be the most significant blow of all.

"The macroeconomic and geopolitical conditions continue to be characterized by an exceptional degree of uncertainty, including the war in Ukraine, its effects on supply chains and on the availability and the development of prices for energy and raw materials. Further effects due to the rapidly changing situation in Russia and Ukraine are not currently known and have not yet been taken into account in our key figures," said Herald Wilhelm, Mercedes-Benz chief financial officer, in a statement regarding the company's third-quarter earnings.

2021-2023 Mercedes-Benz S-Class Sedan Front Angle View CarBuzz

Ford completed its exit from Russia on Wednesday and said in a statement that it had sold 49 percent of its shares in the Sollers Ford joint venture. Ford will, however, retain the option to repurchase them within five years should things stabilize. Ford suspended all operations back in March, including engineering support, the supply of parts, and, most importantly, the manufacturing of new vehicles. The Russian motor industry has taken significant blows in the past eight months, and this major announcement compounds the issues created by other mass evacuations by companies like Hyundai, Toyota, and Mazda. Some, like Volkswagen and Volvo, have elected to stop delivering cars to the country. So no more Mercedes-AMG vehicles, no more Ford Mustangs, and no more Nike running shoes. Russia can now return to its soviet roots because that was the plan all along, right?

2018-2023 Ford Mustang Coupe Forward View Ford
Source Credits: CBS News

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