Mercedes-Benz and FIAT Chrysler may lose their rights to participate in government procurement tenders

Mercedes-Benz and FIAT Chrysler may lose their rights to participate in government procurement tenders

Gazeta.ru – Mercedes-Benz and FIAT Chrysler may lose their rights to participate in procurement tenders, organised by the Russian government. According to a new decree prepared by the government, however not yet in force, the car manufacturers have the obligation to contract an engagement to make production in Russia with a certain localisation rate, in order to be able to participate in procurement tenders announced by the government. Mercedes-Benz and FIAT Chrysler have not made such a commitment yet. Currently, there are 34 companies who committed themselves to the obligation in writing, within the frame of the Industrial Assembly Agreement.

The adhesion act signed with the World Trade Organisation prevents the government to extend this list until 2018. Therefore, Mercedes-Benz and FIAT Chrysler will be excluded from the aforementioned tenders, at least until 2018. Further measures to be taken by the government beyond 2018, in order to promote the domestic production, are a strong possibility.

The General Director of Mercedes-Benz in Russia: Jan Madeja has stated in his recent interview that Russian sales only constitute 3% of the company’s total sales.