Volkswagen’s (VOWG_p.DE) truck division Traton (8TRA.DE) on Tuesday said some of its divisions were disposing assets in Russia, a move that will cause a 550 million euro ($560 million) loss.
MAN Truck & Bus SE and Scania AB, subsidiaries of Traton, are selling their sales companies in Russia to local partners, while Scania is also divesting its Russian financing business, Traton said.
The company said the transactions, which still require regulatory approval, are expected to be completed by the first quarter of 2023.
“Due to the direct impact of the war in Ukraine, asset write-downs and additional expenses of 113 million euros were already incurred in first half-year 2022,” Traton said, adding the 550 million would come on top.
The move has no impact on Traton’s outlook for adjusted operating return as well as net cash flow in 2022, it said.
($1 = 0.9828 euros)