Traton divisions Scania and MAN Truck & Bus are to sell their Russian assets.
The move comes after both MAN and Scania pulled out of Russia in March this year, in line with other Western companies, as part of sanctions imposed on Russia in protest at its invasion of Ukraine.
Traton said MAN will sell its local sales companies to "local sales partners" in Russia, who have not been identified.
Scania, which stopped deliveries of both trucks and parts into Russia and halted production in St Petersburg in March, announced it has made a 5bn Swedish krone (£412.68m) provision to sell its sales and service operations, and financial services in Russia.
The Swedish manufacturer said that the provision will have a negative impact on its Q3 2022 results. The company has total assets of around SEK11bn (£0.9bn) relating to Russia. In 2021, around 6% of its net sales were attributable to the country.
Read more
- Truck manufacturers suspend trade with Russia as sanctions bite
- Schmitz Cargobull halts all investment in Russian and Belarusian plants and service facilities
- Truck dealership rescues stranded Ukranian HGV drivers and helps get them home
In a statement issued today (13 September) Scania said it has "invested and developed a business in Russia for several decades and has a great responsibility for relationships with customers and, above all, for employees.
"After Russia invaded Ukraine, the export restrictions and sanctions have changed the general business situation in Russia. Already in March, Scania decided to stop deliveries of both trucks and parts to Russia and halted the production in St Petersburg."
It added: "Scania Group had per 1 September, 2022 total assets of approximately BSEK 11 related to Russia. In 2021, approximately 6% of the Group’s net sales were attributable to Russia. Scania Group has, per 13 September 2022, made a provision for Russia amounting to around BSEK 5. This will have a negative impact on the Q3 2022 result."
The transactions for both MAN and Scania still need approval from the Traton and Volkswagen supervisory boards, as well as various Russian regulatory authorities. They are expected to be completed by next year's first quarter, Traton added.
Traton said the company was expected to incur an “additional loss” of up to €550m (£477.3m).
The group said it already incurred asset writedowns and other expenses totaling €113m (£98m) in the first half of this year “due to the direct impact of the war in Ukraine.”
