BENGALURU/WASHINGTON (Reuters) – Ford announced on Wednesday it would leave Russia, becoming the latest automaker to leave the country after the outbreak of war in Ukraine.
Mercedes-Benz also said on Wednesday it would withdraw from the Russian market and sell shares in its industrial and financial services subsidiaries to a local investor.
Ford said it had finalized a deal to sell its 49% stake in Russia-based Sollers Ford joint venture for an undisclosed “nominal” price.
The US automaker recorded a writedown of $122 million related to the suspension of Russian operations earlier this year and will not take further write-offs ahead of Wednesday’s announcement, the company said.
“Ford shares will be transferred to the joint venture at par value,” Ford said, adding that it retains the option to buy it back within a five-year period “if the global situation changes.”
Ford sold about 20,000 vehicles in Russia in 2021, according to analyst estimates. The company had announced the suspension of its operations in the country in March.
In 2019, Ford restructured its investment in Russia and ceded control of the venture to Sollers.
Ford’s move follows that of other US companies, including Cisco Systems and Nike, which have also announced their departure from Russia after sanctions on Moscow made it nearly impossible for manufacturers to do business in the country.
(By Abhijith Ganapavaram and David Shepardson)
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