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Oct 26 (Reuters) – Ford Motor Co (FN) said on Wednesday it would exit Russia, the latest automaker to pull out after Russia’s invasion of Ukraine.
Mercedes-Benz ( MBGn.DE ) also said on Wednesday it would exit the Russian market and sell shares in its industrial and financial services subsidiaries to a local investor. read more
Ford said it has completed a deal to sell its 49% stake in the Russia-based Sollers Ford joint venture for a “nominal” undisclosed price.
The US automaker took a $122 million writedown connected to its suspension of Russian operations earlier this year but will not take additional writedowns in connection with Wednesday’s announcement, the company said.
“The Ford shares will be transferred to the Joint Venture for a nominal value,” the company said, adding that it retains the option to buy them back over a 5-year period “if the global situation changes. “
Ford sold about 20,000 vehicles in Russia in 2021, according to analyst estimates. It announced the suspension of its operations in Russia in March.
Ford said in 2019 that the joint venture was closing two assembly plants and an engine factory in Russia, exiting the country’s passenger car market. Ford renewed its investment in Russia in 2019 and gave control of the venture to Sollers.
Ford follows US companies including Cisco Systems Inc ( CSCO.O ) and Nike Inc ( NKE.N ) in announcing withdrawal from Russia, after Western countries imposed sanctions on Moscow because of its invasion of Ukraine, making it almost impossible for manufacturers to do business there.
Reporting by Abhijith Ganapavaram in Bengaluru and David Shepardson in Washington; Editing by Vinay Dwivedi and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles.
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