Former Mercedes plant near Moscow to resume production – deputy PM

Russian auto dealer Avtodom could launch production at a former Mercedes-Benz plant in Moscow Region with new partners next year, Russian Deputy Prime Minister Denis Manturov, who serves as trade and industry minister, announced this week.  

The minister specified that the factory would assemble light vehicles as the production line was designed specifically for this category.     

“I hope that my colleagues will finalize their agreements with the selected industrial partners and start production next year,” Manturov said on the sidelines of the Army-2023 forum.     

Avtodom purchased the Russian assets of Mercedes-Benz in April, after the German auto giant left the country due to Ukraine-related sanctions. The sale included the plant in Moscow Region and Mercedes-Benz Manufacturing Rus LLC, a car-leasing and insurance company.     

Avtodom also received the right to carry out maintenance of Mercedes-Benz vehicles in Russia, including warranty and post-warranty support.     

Meanwhile, the Izvestia newspaper reported on Monday that Mercedes-Benz had announced the complete disconnection of Russian dealers from its software, suspending access to online systems used for maintenance and the identification of problems.    

Mercedes halted manufacturing in Russia in early March last year, shortly after the start of the military conflict in Ukraine. In October, it announced it would divest from Russia, under pressure from Western sanctions which jeopardized the future of its business operations in the country.     

However, the German company secured a buyback option in its deal with the Russian government to sell its assets in the country, which gives it the right to return and reclaim its business within six years.

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