Nissan is hiking output in Russia to offset effects of weak ruble

Article by Christian A., on December 16, 2014

Nissan is increasing the number of vehicles it is building in Russia as it tries to offset a weakening ruble that is hurting its profits. The Japanese carmaker has recently commenced output of the X-Trail SUV at its St. Petersburg site this week and plans to start building the Qashqai at the plant next year. Nissan has expanded the site’s annual production capacity to 100,000 units thanks to a EUR167-million investment.

According to Colin Lawther, Nissan Europe's head of manufacturing, exporting the Qashqai to Russia from Sunderland, England, "is not as attractive as it once was." He remarked that the weakening ruble is causing "a lot of stress" to carmakers importing vehicles into Russia.

A Toyota Europe spokesman has admitted that the ruble’s decline is having a negative effect on the carmaker’s profitability in the region. Nissan considers Russia, along with the United Kingdom, as one of its biggest markets for the Qashqai. In fact, the Qashqai is Nissan’s second-bestselling model in Russia next to the Almera compact sedan.

In the first 11 months of 2014, Nissan sold 42,220 Almeras, 27,323 Qashqais and 22,251 X-Trails in Russia. Lawther noted that once Nissan commences output of the Qashqai in St. Petersburg at the end of 2015, the now unfavorable exchange rate will be of less impact.

Nissan plans to have 90 percent of its vehicles being sold in Russia to be locally built by 2016. Models now being built at Russia include the Murano and Pathfinder large SUVs, and the Teana midsize sedan. These models are eligible for the scrappage discount program that the government has initiated to support the auto industry.

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 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