General Motors Company, the world’s second-biggest carmaker, has cut down production in Russia, following poor deliveries amid a weakening economy arising from government’s conflict with Ukraine.
GM halted car making at its plant in St. Petersburg until 12th of next month, and plans three further suspensions through October 27, Nico Schmidt, a spokesman for the carmaker in Ruesselsheim, Germany, said in an e-mail.
Schmidt saidthe Detroit-based manufacturer will only build cars in Russia for four days in September and eight days in October,.
Russia’s dispute with Ukraine has prompted United States and European Union trade sanctions, contributing to a decline in the ruble and the possibility of a recession.
Meanwhile, Ford Motor Company wrote down its entire $329m investment in its Russian joint venture with OAO Sollers the second quarter after outlining plans in April to eliminate 950 positions at two of the partnership’s plants.
Renault SA, which shares control of OAO AvtoVAZ, Russia’s largest carmaker, said last month that the full-year contraction in the country’s auto market may exceed a predicted 10 per cent drop.
Seven-month deliveries by GM’s Chevrolet brand plunged 23 percent from a year earlier to 73,749 vehicles, while sales by GM’s Opel division dropped 17 per cent to 38,440 cars, according to figures compiled by the Association of European Businesses in Russia.