Russia exit costs EU automaker almost $700 million

Must read

Putin says Russia will place tactical nuclear weapons in Belarus as Ukraine eyes offensive

President Vladimir Putin said Russia is preparing to station tactical nuclear weapons in neighboring Belarus, escalating a confrontation with the US and its allies...

After Gen Z helped elect Biden, White House worries a TikTok ban would ‘lose every voter under 35, forever’

Youth turnout surged in the three elections since Donald Trump was elected president in 2016, helping Biden eke out victories...

Schools Are Pushing Gender Pronouns and Hiding It from Parents

By John Ransom for RealClearEducation A new report reveals students in the nation’s largest school...

Leftist Groups Tapping $1 Billion to Vastly Expand the Private Financing of Public Elections

Democrats and their progressive allies are vastly expanding their unprecedented efforts, begun in 2020, to use private money to influence and run public...

Skoda is now in the final stages of talks over an asset sale, the company’s CEO says

Czech carmaker Skoda Auto, a unit of Germany’s Volkswagen, is closing in on a deal to sell its assets and exit Russia, the company’s CEO Klaus Zellmer announced this week.

Skoda has taken a hit of almost €700 million ($742 million) from exiting its second largest market due to disruptions in logistics chains caused by Western sanctions. Exports of cars and spare parts to Russia have also been stopped.

“The Volkswagen Group has analyzed various scenarios for the future of our business options in Russia,” Zellmer told reporters, adding that “the preferred option is to sell the assets of Volkswagen Group Russia… to a third party.”

He declined to give details on the deal until they are agreed by all parties, but noted that talks on the sale were “in the final stages.”

The automaker, which produced about 780,000 cars globally in 2022, suspended production at its two Russian factories in Kaluga and Nizhny Novgorod shortly after Ukraine-related sanctions were imposed by the EU. The facility in Kaluga has a production capacity of 225,000 vehicles per year, and assembled the Volkswagen Tiguan, Volkswagen Polo, and Skoda Rapid.

Last year, Skoda’s production in Russia plummeted to 18,300 cars from the 90,400 delivered in 2021, according to official data.

The carmaker’s net profit slumped 11.7% to €489 million in 2022, affected by a sharp rise in raw material prices and global supply chain disruptions.

For more stories on economy & finance visit RT’s business section

More articles

Latest article

Putin says Russia will place tactical nuclear weapons in Belarus as Ukraine eyes offensive

President Vladimir Putin said Russia is preparing to station tactical nuclear weapons in neighboring Belarus, escalating a confrontation with the US and its allies...

After Gen Z helped elect Biden, White House worries a TikTok ban would ‘lose every voter under 35, forever’

Youth turnout surged in the three elections since Donald Trump was elected president in 2016, helping Biden eke out victories...

Schools Are Pushing Gender Pronouns and Hiding It from Parents

By John Ransom for RealClearEducation A new report reveals students in the nation’s largest school...

Leftist Groups Tapping $1 Billion to Vastly Expand the Private Financing of Public Elections

Democrats and their progressive allies are vastly expanding their unprecedented efforts, begun in 2020, to use private money to influence and run public...

DC City Council Embarrassed After Push for Liberal Crime Bill Backfires

By Casey Harper (The Center Square) The liberal crime bill pushed by local Washington, D.C....