The Mikhailov family of dealers might see Avtodom stepping into the running of a broader deal, while the Moscow Region Development Corporation is said to be taking part in the negotiations, according to sources cited by Kommersant. The publication notes that Mercedes-Benz is pursuing the sale of a factory site in Russia, and market observers indicate that a significant portion of the Esipovo site near Moscow is owned by a joint venture named Daimler KAMAZ Rus, with 20 percent held by the joint venture and the remainder under the umbrella of Mercedes-Benz AG.
This points to a potentially complex transaction that could involve not only the sale of real estate but also the transfer of rights to distribute the Mercedes-Benz brand in the Russian market. Multiple dealerships are reportedly involved in the discussions, with one entity commonly referred to as Car House emerging as a principal candidate in the negotiation process.
Another asset on the table is the building located in Veshki, near Moscow, which houses both office space and service facilities. The buyer for that property remains unidentified at this stage.
Representatives of both the distributor and Avtodom have declined to comment, citing the absence of concrete decisions at the moment. The ongoing process appears to be developing against a backdrop of careful strategic consideration rather than an immediate closing.
In earlier conversations, Avtodom hinted at ambitions beyond traditional automotive retail. There was talk of expanding into industrial assembly, with speculation at times centering on assembling electric vehicles from kits supplied by Chinese manufacturers. Those discussions underscored a broader interest in ownership of supply chains and the potential co-location of assembly activities with dealership networks.
Market observers were surprised by the notion that a dealer would acquire a whole company yet face potential sanctions barriers that could hamper local production of Mercedes vehicles. The Mercedes-Benz group itself would likely avoid providing car kits if doing so risked triggering secondary sanctions. Still, it appears that Mercedes-Benz is reassessing its footprint in Russia and remains open to negotiating terms with a well-positioned dealer, depending on how the regulatory and economic landscape evolves. It is also noted that Mercedes has never recouped the full investment in the factory that began operations in 2019, which leaves room for the group to consider reclaiming the site under a favorable set of circumstances should the market conditions change.
The regional government in Moscow has been aware of the situation but has not disclosed details about the plant’s ultimate fate. While officials acknowledge the strategic significance of the facility, they have refrained from offering a timeline or a definitive plan, emphasizing that any decision will hinge on broader policy and market developments.
Industry insiders emphasize the sensitivity of the negotiations, given the intersection of real estate value, brand rights, and the broader geopolitics that influence industrial activity in Russia. The evolving talk around the plant and associated assets reflects a broader re-evaluation of localization strategies, investment retention, and the balance between domestic manufacturing capabilities and imported components. The outcome of these negotiations may set a precedent for how foreign automotive groups navigate sanctions regimes while preserving strategic interests in the Russian market. (Source: Kommersant)