Mercedes won’t start production in Russia

Bloomberg News - Daimler AG (DAI)’s Mercedes-Benz unit has decided not to start production in Russia as its sales volumes in the country are still too low, Automotive News reported today, citing Joachim Schmidt, head of sales at Mercedes-Benz.

While the company sold 19,700 vehicles in Russia last year and expects growth this year, local production would only be justified if Mercedes-Benz sells some 100,000 cars every year in the country, Schmidt said, according to Automotive News.

Schimdt also told the newspaper that the company may add more variations to its future A and B class model lines, such as a three-door version of the A class and a convertible.