Mercedes-Benz Russia Assets and BAIC’s Potential Ownership

No time to read?
Get a summary

Russia’s Mercedes-Benz Assets and the Possible Role of BAIC

The discussion centers on Mercedes-Benz’s assets in Russia, including the right to supply vehicles and the manufacturing facility near Moscow.

China’s BAIC, a partner for Mercedes-Benz within its home market, could become the owner of these assets. If BAIC were to acquire them, Russia could receive new car supplies close to the needed volume, and the German brand might be able to re-enter the market in the future more smoothly.

One analyst, Burgazliev, suggested that the best path might be to sell the Moscow plant to BAIC. He noted that Mercedes-Benz already has a joint venture with BAIC in China. Under this arrangement, it would be feasible to launch production of older Mercedes-Benz models under the BAIC brand at the Moscow facility. A GLK-like crossover, priced around 3.5 to 4 million rubles, could find strong demand in the market, he remarked to Izvestia (Source: Izvestia).

Still, for this to work, the intellectual property rights for earlier Mercedes-Benz models would need to be transferred to a Chinese manufacturer or a joint venture that assembles Mercedes-Benz vehicles.

The shift in focus from a traditional Mercedes-Benz dealer to a potential Chinese buyer arises from a new public statement by a regional leader. Yesterday, Moscow region Governor Andrei Vorobyov announced the possibility of transferring the Moscow-area plant to a Chinese automaker.

Vorobyov expressed cautious optimism about reinventing the plant’s future. He stated that Mercedes could return, but if that did not happen, the team is evaluating a roster that includes a reliable Chinese automaker with steady demand for its cars, according to Sputnik radio (Source: Sputnik).

No time to read?
Get a summary
Previous Article

{

Next Article

M-12 Highway Expansion and Environmental Considerations