For years, Russian consumers have been told in unison that the market of a huge place between Estonia and Mongolia has no interest due to its small volume, and that production and offices here are generally kept solely for human motives. They say customers were not offended. However, it was worth the roar of the twenty-second year, as the situation changed radically: manufacturers began to declare monstrous losses due to the loss of this “little” and “unnecessary”, God forgive me, site. Even such indestructible, it would seem, blocks, like a Mercedes, fell down.
The Germans have not been doing well for a year: new car production has not reached pre-pandemic levels and there are serious problems with repair parts. Many “articles” are out of stock and the waiting time is longer than 6 months. Obviously – from a good life, high income and adamant stability. Not different. Seriously, no one has lifted the microchip shortage and there have been insurmountable logistical problems over the past three years, so the exodus from Russia is the icing on the cake. A cherry that easily knocks down a giant.
No one argues that the Russian car market was the base and base, of course not. Our latitudes are far from China, America and the Emirates. However, no one has canceled the cumulative effect and it seems to have reached the “red line”. The best measure of serious problems is the investment market, where the German brand has always delivered extremely stable performance. Emphasis on the word “were”.
Kuwait’s sovereign wealth fund Kuwait Investment Authority, the third-largest shareholder of Mercedes-Benz Group AG, Bloomberg reports, plans to sell 25% of the shares of the German company, which the sheikhs have owned for 50 years. Again: fifty years, half a century. Such an “exit from an asset” not only speaks of an extremely difficult state of affairs, high risks and possible stagnation, and very soon, but can also easily trigger a “domino effect”: smaller investors will start selling shares, which will automatically lead to a fall in quotes and a fall in company value.
Large players will then either have to buy up excesses in the market and thus retain the value of their assets, or bear the costs. For the brand itself, however, such an outcome guarantees difficult times: it will have to cut budgets, payroll and postpone promising projects. The alternative is selling to the Chinese. With guts.