Expropriation of factories
The Russian government threatens to nationalize factories and other assets of foreign companies in Russia. If that really happens, it would also mean a huge loss for a number of car brands.
By threatening nationalization, Putin’s government is trying to prevent more companies from withdrawing from Russia now that that country is in Ukraine’s household. However, this is happening on a large scale, also within the car industry. Volkswagen, Ford and Mercedes, among others, have ceased activities in Russia because of the war. The chance that Russia will switch to nationalization therefore seems to be present in a number of cases, and that would logically cost the brands involved a lot of money.
For example, Automotive News reports that Mercedes-Benz has $2 billion worth of assets in Russia, including a car factory only a few years old. According to experts, although seizure is possible, it will at the same time be very difficult to continue or restart production. After all, parts are needed for this, and that is difficult enough nowadays, even without a war situation.
– Thanks for information from Autoweek.nl