GM reviews timing of Russian site expansion due to lagging market

Article by Christian A., on August 25, 2014

Due to a slump in the auto market in Russia, General Motors Co. is reviewing the timing of the expansion of its site near St Petersburg. GM opened the site -- which builds the Chevrolet Cruze, Opel Astra, and Chevrolet Trailblazer models -- in 2008 and intended to launch the second stage in 2015.

A GM spokesman said the carmaker is taking a close at its plans, given current business situation in Russia and the lower sales since the start of 2014. In 2012, GM presented plans to increase the site’s annual production capacity to 230,000 vehicles by 2015.

GM recently said it was to cut output at the site to four days a month in August and September, as well as eight days in October. Carmakers have seen their sales in Russia as the country’s economic growth slowed down, which has prompted consumers to delay or cancel large purchases.

They saw their car and light-vehicle sales dive 10 percent in the first seven months of 2014 to 1.41 million units, including a 23-percent drop in July. Chevrolet posted a 23-percent drop in deliveries in the January-July period to 73,749 vehicles, while sales by Opel logged a 17-percent dip in sales to 38,440 cars, according to figures compiled by the Association of European Businesses in Russia.

Other carmakers are also reducing their production in Russia and are even lowering their forecasts. Ford has written down its entire $329-million investment in a joint venture with Sollers after unveiling plans in April to cut 950 jobs at two of the JV’s plants. [source: Reuters.com]

Topics: gm, russia, sales

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries