Mercedes-Benz Rus
Russia
Central Federal District of the Russian Federation
Moscow
39a Leningradsky Prospekt, 125167
Content |
CJSC Mercedes-Benz RUS (formerly DaimlerChrysler Cars RUS), a Russian company with 100% foreign capital, was established on December 8, 1994 as a subsidiary of Daimler AG (at the time of founding -Daimler-Benz AG) in Russia. It became the first foreign automobile company to open in Russia.
The most important areas of the company's activity are the promotion of Mercedes-Benz and Maybach brands on the Russian market through official dealers, the development of after-sales services, as well as the expansion of the dealer network and contacts with regional partners. At the end of 2008, the dealer network consisted of 45 partners in the sale and after-sales service of Mercedes-Benz cars, small-tonnage and trucks.
Performance indicators
2022
Loss of 658m euros due to withdrawal from Russia
In its financial report for 2022, which was released in February 2023, Mercedes-Benz clarified the amount of losses from the curtailment of activities in Russia. According to the document, we are talking about losses of 658 million euros. At the same time, the automaker did not disclose data on what is included in these cash losses.
Deliveries of Mercedes-Benz cars to Russia ceased in early spring 2022. Then the Russian Mercedes-Benz plant was also stopped. Soon, the Association "Russian Automobile Dealers" (ROAD) said that sellers faced problems in servicing cars due to a lack of spare parts. However, representatives of the brand denied the claims and assured that each case will be analyzed individually.
Since the official supply of cars stopped, dealers tried to arrange the delivery of the necessary models from abroad through unofficial channels. However, soon the European Union introduced new sanctions against cars supplied to Russia - a ban on the sale of models more expensive than $50 thousand.
According to "Авто.ру," resellers had to switch to a scheme with the purchase of used cars from individuals, but difficulties with transferring money abroad made the purchase of Mercedes in Europe extremely inconvenient and expensive. Nevertheless, it still works, but not all buyers are ready to pay and risk large amounts.
In February 2023, Russian President Vladimir Putin allowed Avtodom automobile holding to buy a subsidiary bank Mercedes-Benz. Avtodom received permission to acquire a 100% stake in the authorized capital of Mercedes-Benz Bank Rus, which is owned by Mercedes-Benz Group AG.
Despite losses from Russian business, the company was able to end the year with a net profit of 14.81 billion euros, which is 37% less than a year ago.
Loss of €709m due to withdrawal from Russia
Mercedes-Benz lost 709 million euros in the first quarter of 2022 alone due to leaving Russia. The German automaker announced this on April 27, 2022 as part of the publication of its financial statements.
As the companies specified, losses of 709 million euros are associated with "adjustment of production activities in Russia." Moreover, it is noted that these and other losses were compensated by income from the sale of part of the business (which one is not specified) in the amount of 918 million euros.
Mercedes-Benz added that after the start of the Russian special operation in Ukraine, the company stopped the export of cars, vans and spare parts to the Russian Federation, as well as production in the country.
 | The company is in close contact with suppliers linked to Ukraine to protect supply chains. This work, among other things, involves the transfer of production to other places within the partner network - it was reported. |  |
The risks that the special operation created on To Ukraine were listed in the annual report of Mercedes-Benz in March 2022. Among them are supply chain breaks caused by the coronavirus pandemic, COVID-19 possible interruptions in energy supplies, and even those that cyber attacks became more frequent in the first quarter of 2022.
In early April 2022, the general director of Avtodom Group of Companies (one of the largest car dealers specializing in the sale of premium cars) Andrei Olkhovsky said in an interview with Vedomosti that 50 pieces of each brand remained in warehouses, including Mercedes-Benz. Avilon Mercedes-Benz - the leader in sales of Mercedes-Benz cars, the stocks of the conditional Mercedes-Maybach will last for a month. Director of Avilon Renat Tyukteev said that importers' stocks will last for 2-5 months.
At the end of February 2022, it became known that Mercedes-Benz is exploring the possibility of selling its 15% stake in Kamaz. Cooperation with the Russian company was also suspended by truck manufacturer Daimler Truck. The company will not produce trucks in Naberezhnye Chelny and supply components to Russia as part of the Daimler Kamaz Rus joint venture[1]
2021: Revenue growth by 43.3% to RUB 274.8 billion
The Russian subsidiary of Mercedes ended 2021 with revenue growth of 43.3% compared to 2020. In absolute terms, sales reached 274.8 billion rubles, and their cost - 251.3 billion rubles (+ 48.9% on an annualized basis). Such data on Russian accounting standards were released to the SPARK-Interfax system in April 2022.
In 2021, Mercedes Benz Rus JSC earned 10 billion rubles of net profit, which is 1.7 times more than a year ago. Gross profit rose by 2.1%, to 23.5 billion rubles. Profit from sales tripled to 11.9 billion rubles. The company's commercial expenses decreased by 55%, to 6.2 billion rubles, managerial expenses grew by 1.9%, to 5.3 billion rubles.
Short-term liabilities of Mercedes Benz Rus JSC as of the end of 2021 decreased by 13.3%, to 34.2 billion rubles. Accounts payable decreased by 4.7%, to 32.5 billion rubles, short-term borrowed funds fell to 169 thousand rubles from 3.2 billion rubles a year earlier.
According to the Association of European Businesses (AEB), sales of Mercedes-Benz passenger cars and light commercial vehicles (including Smart) in Russia in 2021 increased by 10.6% year-on-year, to 48.85 thousand units.[2]
History
2023
Closing the sale of Russian repurchase assets
The dealer group Autohouse"" in April 2023 closed the deal to acquire the Russian assets of the Mercedes-Benz automaker, including the Moscow Region automobile plant.
German automaker Mercedes-Benz has agreed to buy back its Russian assets if sanctions are lifted.
Russian "daughter" Mercedes-Benz could not get the arrest of SAP CIS money
Mercedes-Benz RUS, the Russian subsidiary of the carmaker, in a Mercedes-Benz Group trial with SAP CIS tried to obtain the arrest of funds or other property SAP CIS as interim measures in its lawsuit. But on February 16, 2023, the Arbitration Court Moscow refused Mercedes-Benz RUS to satisfy these requirements[3]
The court explained that interim measures are allowed at any stage of the arbitration process if one of the following grounds exists: if failure to take these measures may make it difficult or impossible to execute the judicial act, and the second - in order to prevent significant damage to the applicant.
However, the Moscow Arbitration Court considered that the applicant did not provide evidence confirming the existence of at least one of these grounds, as well as evidence indicating that SAP CIS is taking any actions aimed at changing the existing position of Mercedes-Benz RUS. The arguments of the latter are not documented, stated in the court ruling of February 16.
Accordingly, the petition of Mercedes-Benz RUS to seize funds or other property of SAP CIS was not granted.
A lawsuit against SAP CIS to recover losses in the amount of about 189.2 million rubles against Mercedes-Benz RUS was filed in January 2023. How she suffered a loss is not explained in the current public documents in the case. Information about this should appear later in the motivated decision of the court following the consideration of the case on the merits, scheduled for March 21.
According to the Mercedes-Benz RUS digital passport on the TAdviser portal, various SAP solutions have been implemented in the company over the years. So, in 2009, for example, there was a project to implement SAP ERP HCM, in 2015 - SAP CRM, in 2021 - the SAP Track & Trace solution for marking tires.
SAP, we recall, previously decided from January 2023 to completely block access to its system to Russian customers, through which they received technical support - receiving software updates, security patches, placing applications for solving various problems. This is due to the 8th package of EU sanctions against Russia, which includes a ban on the provision of IT consulting services to Russians.
At the same time, as of February 2023, the German vendor is preparing a special portal for Russian customers with current technical support contracts, from where they can download software updates. Read more here.
Take-off of offers to sell used cars due to service difficulties after the imposition of sanctions
In January 2023, the number of offers to sell used premium cars - Mercedes-Benz, BMW, Audi, Lexus, etc. - increased by 63% compared to last year. The owners are most actively trying to get rid of cars purchased over the past 3 years - the number of such ads has doubled. Experts attribute the trend to maintenance difficulties: you cannot update the software, which is critical for some models, and the repair time has increased significantly.
In Russia, Mercedez-Benz filed a lawsuit against SAP for 189.2 million rubles
The Russian representative office of the Mercedes-Benz Group AG concern filed a lawsuit against the Moscow Arbitration Court against the division of the German software manufacturer SAP in the Russian Federation. This became known on January 22, 2023. Read more here.
2022
Stop support for most auto diagnostics and configuration tools
At the end of 2022, it became known that Mercedes-Benz stops supporting most of its service programs in Russia, which were used to diagnose and configure the electronic systems of brand cars.
In addition, Mercedes-Benz told domestic services that the shipment of spare parts from the company's central warehouse was also temporarily suspended.
Avtodom bought a Mercedes-Benz plant in the Moscow region
October 26, 2022 it was announced the sale of the Mercedes-Benz plant in the Moscow region to a car dealer Autohouse"." Financial the company did not disclose the terms of the transaction.
| | The main priorities in agreeing on the terms of the transaction were to maximize the fulfillment of obligations to customers from Russia both in the field of after-sales service and the provision of financial services, as well as the preservation of jobs for employees of Russian divisions of the company, - commented Natalya Koroleva, General Director of Mercedes-Benz RUS JSC. | |
The press service of Avtodom said that, for their part, they will do "everything possible to preserve the service of Mercedes-Benz cars." The dealer promises to tell about the next steps "after the completion of the necessary approvals by all relevant authorities."
Managing partner of NF Group (formerly Knight Frank Russia) Alexei Novikov, in a conversation with Vedomosti, estimated the cost of land and the plant building excluding business within 4 billion rubles. He draws attention to the fact that this is the most modern automotive enterprise with technological equipment, located closer than other similar facilities, to Moscow - the largest sales market.
The cost of the object, excluding equipment and technologies, is at least 7.5 billion rubles, says Anton Alyabyev, senior director of the warehouse and industrial real estate department at CORE.XP.
It is difficult to assess the asset, since much will depend on what conditions will be spelled out in the agreement between the parties, says auto expert Vladimir Bespalov. According to him, Avtodom needs to look for an industrial partner, since it is unlikely that the dealer will be able to produce a Mercedes lineup.
| | Here, first of all, the gaze rushes to, China although theoretically there are other countries, for example, India- added Bespalov.[4] | |
Moscow region is concerned about stopping the plant in Solnechnogorsk
The Governor of the Moscow Region Andrei Vorobyov on May 25, 2022 announced the tangible consequences of stopping the Mercedes-Benz plant in Solnechnogorsk. He noted that 1.5 thousand people are involved in production.
Shutdown of activities in Russia
In early March 2022, Mercedes-Benz, in connection with a military operation in Ukraine, decided to stop production at a car plant near Moscow. The company also announced the termination of the supply of cars and low-tonnage cars to the Russian market.
At the Mercedes-Benz plant in the Esipovo industrial park, E-Class sedans, as well as GLC, GLE and GLS crossovers were assembled. The staff of the enterprise is about a thousand people, and its construction cost almost 300 million euros. At the same time, all Russian assets of Mercedes-Benz by March 2022 were estimated at 2 billion euros, or 289.7 billion rubles.
2017: Mercedes to build a plant near Moscow for 15 billion
Investments in the construction of the Mercedes premium SUV plant will amount to at least 15 billion rubles. Interfax writes about this with reference to the press service of the Ministry of Industry and Trade in February. Such figures appear in a special investment contract signed by the authorities of the Russian Federation and the Moscow region, as well as the Russian "daughters" of the German automaker Daimler and their partner in the KamAZ project.
The plant will be built on the territory of the Esipovo industrial park in the Solnechnogorsk district of the Moscow region. The projected capacity of the enterprise is more than 20 thousand cars per year. The plant will assemble, weld and paint the machines. The start of production is scheduled for 2019.
Earlier, the head of the Ministry of Industry and Trade Denis Manturov previously estimated investments in the Mercedes plant at 300 million euros (more than 18 billion rubles). However, at the same time, the large designed capacity of the enterprise was also called - from 25 to 30 thousand cars per year. The construction of the plant is planned to begin in 2018.
The management of the German automaker BMW decided to build Russia a full cycle in the assembly enterprise. They write about this with reference to sources close to the company's management in October 2017. " Sheets A special economic zone in the Kaliningrad region is considered as the main option for placing production.
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