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New VW vehicles in Kaluga
Photo: imago stock / IMAGO/YAY Images
Corporations such as Volkswagen, Mercedes-Benz and Stellantis not only face the loss of their multi-billion dollar local investments, but also a series of expensive legal disputes.
For car manufacturers, there is "the risk of buybacks," says Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK).
According to Russian law, manufacturers are obliged within certain warranty periods to supply their customers with spare parts if they need them.
However, many of these parts, such as rear-view mirrors, are on the EU sanctions lists.
The companies have therefore stopped exporting them to Russia.
If manufacturers fail to meet their obligation to maintain a vehicle, affected customers can sue for breach of contract – and possibly get the full purchase price back.
In addition, they could be entitled to compensation for the time they were unable to use their car.
The financial risk is correspondingly high.
The VW Group, for example, sold a good 200,000 vehicles in Russia in 2021 alone.
The groups are nevertheless relaxed: Russian customers should rather keep their cars instead of returning them, according to VW.
After all, hardly any new vehicles are available in Russia.
