Volkswagen truck units selling Russia business activities
BERLIN (AP) — Volkswagen truck subsidiary Traton said Tuesday that two of its divisions are selling their business activities in Russia to local partners, transactions expected to lead to a loss of up to 550 million euros (dollars).
Traton said both MAN Truck & Bus and Scania “are disposing their sales companies in the Russian Federation to local sales partners,” which were not identified. It said Scania also is disposing of its Russian financing business.
The transactions 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 said in a statement.
It said the company was expected to incur an “additional loss” of up to 550 million euros, depending on the euro-ruble exchange rate.
Traton said it already incurred asset writedowns and other expenses totaling 113 million euros in the first half of this year “due to the direct impact of the war in Ukraine.”